Question 1199452
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You wish to purchased a house for $120,000 in 12 years. You can invest your money at 4.5%/a compounded semiannually 
for the first 5 years and then you can get 6%/a compounded semiannually for the next 7 years. 
How much do you need to invest now? (Hint: start with the last 7 years) HELPPPPPPP PLZ
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<pre>
Let A be "how much you need to invest now", in dollars.



After 5 years, this amount will grow up to

    {{{A*(1+0.045/2)^(2*5)}}} = {{{A*1.0225^10}}} = 1.249203*A  dollars.



After next 7 years, this amount of  1.249203*A  dollars will grow up to

    {{{1.249203*A*(1+0.06/2)^(2*7)}}} = {{{1.249203*A*1.03^14}}} = 1.249203*A*1.5125897 = 1.889532*A dollars.


Your equation to find A is

    1.889532*A = 120000  dollars.


From this equation, you find  A = {{{120000/1.889532}}} = 63507.79  dollars.


<U>ANSWER</U>.  You should invest  $63507.79  dollars now.
</pre>

Solved.


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To see many other similar &nbsp;(and different) &nbsp;solved problems on compounded interest accounts, &nbsp;look into the lesson

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/percentage/lessons/Compound-interest-percentage-problem.lesson>Compounded interest percentage problems</A> 

in this site.



Learn the subject from there.