View the step-by-step solution to:

How much must be deposited today in the following account in order to have \$35,000 in 5 years on a down payment for a house?

How much must be deposited today in the following account in order to have \$35,000 in 5 years on a down payment for a house?  An account with annual compounding and an APR of 6%

A= p(1+r)^n 35000 =... View the full answer

1 comment
• this is correct. please rate as best
• JohnyZ
• May 12, 2016 at 7:01pm

Assume we are dealing with compound interest and the interest is... View the full answer

• P(1.06^5-1)/0.06 = 35000.......... P = 6208.87 this is the right answer!
• Insider
• May 12, 2016 at 6:59pm
• Sorry I had misread compounded monthly but the comment above is the right answer for an annual compound
• Insider
• May 12, 2016 at 6:59pm

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
• -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents