Dana wants to have $5000 available for a down payment on a new car when she finishes her degree in four years. If her money market account has an interest rate of 3.75% compounded monthly, how much of her graduation money does she need to set aside for the car?

Question

Mathematics

Cherish Larsen

18 October, 06:00

Dana wants to have $5000 available for a down payment on a new car when she finishes her degree in four years. If her money market account has an interest rate of 3.75% compounded monthly, how much of her graduation money does she need to set aside for the car?

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Trevor Austin · Answer 1

Since there is 12 months on 1 year so that equals 365 days. What i think u suppose to do is. 1460*3.75% = 54.75

1460 because 4 years equals 1460 days times 3.75% and that equals 54.75 and since its 54.75. She wants 5000 then the answer is 475 because 475 is left of 5000.