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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%

Top Answer

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

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Other Answers

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

2 comments
  • 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

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