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Need help with math question?

To upgrade your stand you will need $3000. You currently have $2500. If you invest your money today At 6.5% compounded monthly, will you have enough money In 3 years to be able to purchase a new stand?? Explain.

1 Answer

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  • 8 years ago

    The increase monthly is (6.5/12)% so after 36 months the $2500 becomes

    $2500(1+6.5/1200)^36

    =$3036.68

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