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How much must be deposited today into the following account in order to have 35,000 in 6years for a down payment on a house? Assume no additional deposits are made.An account with monthly compounding and an APR of 7%

Solution

How much must be deposited today into the following account in order to have 35, 000 in 6years for a down payment on a house? Assume no additional deposits are made.An account with monthly compounding and an APR of 7%

Solution

Principal : 23024.72

Solution steps

Translate the problem into an equation:

35000 = P (1 + \frac{0.07}{12})^{12 \cdot 6}

Solve for

P, 35000 = P (1 + \frac{0.07}{12})^{12 \cdot 6} : P = 23024.72

Principal : 23024.72

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How much must be deposited today into the following account in order to have 35,000 in 6years for a down payment on a​ house? Assume no additional deposits are made.An account with monthly compounding and an APR of 7​%

Solution

Solution

Popular Examples

How much must be deposited today into the following account in order to have 35,000 in 6years for a down payment on a house? Assume no additional deposits are made.An account with monthly compounding and an APR of 7%