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
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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
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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(52864) (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.)
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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.
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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
