# Thread: determining the time period

1. ## determining the time period

judit received the proceeds from an inheritance on march 25. She wants to set aside enough on March 26 so that she will have $20 000 available on october 1 to purchase a car when the new models are introduced. If the current interest rate on the 181 - 270 day term deposits is 3.75% what amount should she place in the term deposit? i'm confused on the time line |____________|____________________________________ ________| march25 day 84 march 26 (day 85) oct 1 (day 274) i'm not sure on where she deposits the 20,000 dollars p = r = 0.0375 t = i = 20,000 (? ) 2. Originally Posted by diehardmath4 judit received the proceeds from an inheritance on march 25. She wants to set aside enough on March 26 so that she will have$20 000 available on october 1 to purchase a car when the new models are introduced. If the current interest rate on the 181 - 270 day term deposits is 3.75% what amount should she place in the term deposit?
march 26 (day 85)
oct 1 (day 274)
i'm not sure on where she deposits the 20,000 dollars
$20,000 is not deposited: a certain amount which will accumulate to$20,000 is deposited on Mar 26.

days = 274 - 85 = 189
interest = .0375 / 365 * 189 = .0194 (rounded)

x = amount deposited on Mar 26; then:
x + .0194x = 20000
1.0194x = 20000
x = 20000 / 1.0194 = 19,619.38 (rounded)
Got that?