SOLUTION: You know that you will need $30,000 for a down payment on a house in 10 years. If your account earns 6% compounded monthly, how much would you need to deposit now to reach your goa

Question 1014163: You know that you will need $30,000 for a down payment on a house in 10 years. If your account earns 6% compounded monthly, how much would you need to deposit now to reach your goal?
Round your answer to the nearest cent.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
You know that you will need $30,000 for a down payment on a house in 10 years. If your account earns 6% compounded monthly, how much would you need to deposit now to reach your goal?
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A(t) = P*(1+(r/n))^(nt)
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30,000 = P*(1+0.06/12)^(12*10)
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30,000 = P(1.005)^120
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30,000 = P(1.8194)
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P = $16,488.98
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Cheers,
Stan H.
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