SOLUTION: Question content area top Part 1 How much must be deposited today into the following account in order to have 30,000 in 7 years for a down payment on a​ house? Assume no addit

Algebra.Com
Question 1205267: Question content area top
Part 1
How much must be deposited today into the following account in order to have 30,000 in 7 years for a down payment on a​ house? Assume no additional deposits are made.
An account with quarterly compounding and an APR of 6.6 ​%
Question content area bottom
Part 1
​$
  
enter your response here should be deposited today.
​(Do not round until the final answer. Then round to the nearest cent as​ needed.)
Answer by ikleyn(52866)   (Show Source): You can put this solution on YOUR website!
.
Question content area top
Part 1
How much must be deposited today into the following account in order to have 30,000 in 7 years for a down payment on a​ house? Assume no additional deposits are made.
An account with quarterly compounding and an APR of 6.6 ​%
Question content area bottom
Part 1
​$
  
enter your response here should be deposited today.
​(Do not round until the final answer. Then round to the nearest cent as​ needed.)
~~~~~~~~~~~~~~~~~~~ 

We have one time deposit "today". The amount of the deposit is x dollars (an unknown value).
The deposit is compounded quarterly at 6.6% annual interest.


The goal is to get $30000 in 7 years.


The formula for the future value at given conditions is


    30000 = .


Here the number "4" is standing for 4 quarters per year.


From the equation,

    x =  = 18972.06  (rounded to the nearest cent).   ANSWER

Solved.

=================

Some people learn the subject better, when they see several similar solved problems,
collected in one place.

Keeping it in mind,  I provide here the references to my lessons in this site,
where several similar problems are placed.  The links are

    - Compounded interest percentage problems
    - Problems on discretely compound accounts

in this site.  Learn the subject from there.



RELATED QUESTIONS

How much must be deposited today into the following account in order to have $70,000 in 5 (answered by greenestamps)
How much must be deposited today into the following account in order to have $ 30 comma... (answered by Theo)
Question content area top Part 1 A company will need ​$75,000 in 7 years for a new... (answered by math_tutor2020)
how much must be deposited today into the following account in order to have $60,000 in 8 (answered by ankor@dixie-net.com)
How much must be deposited today into the following account in order to have 35000... (answered by math_helper)
How much must be deposited today into the following account in order to have $ 60,000 in... (answered by addingup)
How much must be deposited today into the following account in order to have $ 25000 in 7 (answered by ikleyn)
In order to accumulate enough money for a down payment on a​ house, a couple deposits $ (answered by ikleyn)
How much money should be deposited today in an account that earns 6% compounded monthly... (answered by ewatrrr)