Week 4: Student Discussion and Response
Sarah WoodsMondayJun 26 at 10:17am
Manage Discussion Entry
My fiancé, my daughter and myself go camping a lot; my daughter gets a very bad heat rash whenever she is exposed to the sun for long periods of time. After some consideration, my fiancé and I, decided we want to get a 5th-wheel to take camping. The camper we fell in love with is a 2012 forest river cardinal 3450 with 4 slides. It is $45,000 and I believe we can get an 8% interest rate.
Our desired item is the 2012 forest river cardinal 5th-wheel
In 12 the cost is approximately $45,000
The rate of interest is 8%
P=A(1+r)^-n first I started out by writing the Present Value Formula.
P=45000(1+.08)^-12 to work my problem I had to insert my numbers into the formula.
P=45000(1.08)^-12 starting with the parenthesis, I added 1 and .08 resulting in 1.08
P=45000/(1.08)^12 to get rid of the negative exponent I had to flip the problem and change the position of 1.08 .Instead of multiplying 45000 by (1.08)^-12, I will be dividing 45000 by (1.08)^12. (1.08)^12 is the reciprocal of (1.08)^-12
P=45000/2.5181701168 Following the rule of exponents I got the number 2.5181701168 by multiplying 1.08 to the 12th power.
P=$17,870 this would have to be our initial investment.
