oncert pianist is saving up to buy a new grand piano, which costs $26,000. She would like to buy the piano five years from now, and she is opening a savings account today, which pays an interest rate of 5.5% per year. She is also hoping to win an award for young musicians. Based on her high-quality performances and recordings, she is counting on winning this award two-years from now, in which case she would receive a check for $15,000 at that time. Assuming she wins this award and deposits all of the award money into her savings account, and interest rates remain unchanged over this timespan, how much additional money will she have to deposit today in order to ensure she can afford her new piano in five years
A concert pianist is saving up to buy a new grand piano, which costs $26,000. She would like to buy the piano five years from now, and she is opening a savings account today, which pays an interest rate of 5.5% per year. She is also hoping to win an award for young musicians. Based on her high-quality performances and recordings, she is counting on winning this award two-years from now, in which case she would receive a check for $15,000 at that time. Assuming she wins this award and deposits all of the award money into her savings account, and interest rates remain unchanged over this timespan, how much additional money will she have to deposit today in order to ensure she can afford her new piano in five years?
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