Popular >

how much must be deposited today into the following account in order to have 60000 dollars in 7 years for a down payment on a house. assume no additional deposits are made. an account with annual compounding and an APR of 7%. how much should be deposited today

Solution

Solution

Principal : 37364.98

Solution steps

Translate the problem into an equation:

60000 = P (1 + \frac{0.07}{1})^{1 \cdot 7}

Solve for

P, 60000 = P (1 + \frac{0.07}{1})^{1 \cdot 7} : P = 37364.98

Principal : 37364.98

Popular Examples

Moneysaver's Bank offers a savings account that earns 9% interest compounded continuously. If Kevin deposits 2300 how much will he have in the account after six years, assuming he makes no withdrawals?The sum of half a number and 4 is-59 The circumference of a circle is 25.12 miles. What is the circle's diameter?Find the accumulated value of an investment of 4000 at 5% compounded continuously for 4 years.An investor opens an account with a principal of 6,390. The account earns 3.2% simple annual interest. What is the total account balance after 12 years?