$5,000.00 from a distant relative. She invests it in a mutual fund that increases the value of the original investment by 8% each year. a) How much will her original investment be worth in 10 years? b) In 15 years, Penny hopes to have $40,000 available to make a down payment on a house. How much total money would she need to invest in the mutual fund right now in order to have enough for her down payment in 15 years?

$5,000.00 from a distant relative. She invests it in a mutual fund that increases the value of the original investment by 8% each year. a) How much will her original investment be worth in 10 years? b) In 15 years, Penny hopes to have $40,000 available to make a down payment on a house. How much total money would she need to invest in the mutual fund right now in order to have enough for her down payment in 15 years?

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Question

Penny received an unexpected gift of
$5,000.00 from a distant relative. She
invests it in a mutual fund that increases the
value of the original investment by 8% each
уear.
a) How much will her original investment be
worth in 10 years?
b) In 15 years, Penny hopes to have
$40,000 available to make a down payment
on a house. How much total money would
she need to invest in the mutual fund right
now in order to have enough for her down
payment in 15 years?

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