document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=618990>Question 618990</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 3.	After purchasing the townhouses, Willie receives an assessment from the town for $17,500 due in 2 years to pay for road repairs and new sewer hookups for the properties.  How much would he need to invest today in a CD paying 5%, compounded semiannually, to fully pay the assessment in 2 years </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #389224 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=389224\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 3. After purchasing the townhouses, Willie receives an assessment from the town for $17,500 due in 2 years to pay for road repairs and new sewer hookups for the properties. How much would he need to invest today in a CD paying 5%, compounded semiannually, to fully pay the assessment in 2 years<BR>\n" );
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document.write( "A(t) = P(1+(r/n))^(nt)<BR>\n" );
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document.write( "17500 = P(1+(0.05/2))^(2*2)<BR>\n" );
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document.write( "17500 = P(1.025)^4<BR>\n" );
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document.write( "P = $15854.14<BR>\n" );
document.write( "==================<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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