In three years, you want to travel to Europe which you expect to cost $10,000 at that time. You have deposited $5,000 in a Certificate of Deposit that pays 6% interest annually and will mature in three years. You also have a rich aunt who will give you an investment which pays 10% annual returns that will make up the balance of the $10,000 not paid for by the CD. How much must you aunt invest today?

Question

Mathematics

Mikaela Ryan

27 May, 23:59

In three years, you want to travel to Europe which you expect to cost $10,000 at that time. You have deposited $5,000 in a Certificate of Deposit that pays 6% interest annually and will mature in three years. You also have a rich aunt who will give you an investment which pays 10% annual returns that will make up the balance of the $10,000 not paid for by the CD. How much must you aunt invest today?

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Answers (1)

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Jake Sandoval · Answer 1

If the answer is within three years after your aunt makes an investment as well the math co. e around 3000 to 31000 dollars with it close to 3050.

Your Equations: 5000 x 1.06^3 = 5955.08

For finding the other number for the aunt I just guess checked at Y x 1.1^3 and found it to be around 3050