Posted by Leslie on Tuesday, September 2, 2014 at 5:37pm.
Adrianna want to set aside some money for a vacation in 3 years. How much does Adrianna need to set aside today in order to have $8600 in 3 years if it is invested at 5% compounded annually. I am so confused!! Thanks for all your help!!

What is P?  Damon, Tuesday, September 2, 2014 at 5:42pm
1.05^3 = 1.157625
1.157625 * x = 8600
x = 7429.00

What is P?  Henry, Tuesday, September 2, 2014 at 8:43pm
P = Po*(1+r)^n = $8600
r = 5%/100% = 0.05
n = 1comp./yr. * 3yrs. = 3 Compounding
periods.
Po*(1.05)^3 = 8600
Po = 8600/1.05^3 = $7429.00 To be set
aside today.
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