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LovePink

  • 3 years ago

---> Every month, Tristan deposits $488 into an interest-bearing account to save for a down payment on a house. The interest rate on the account is 5.27% compounding annually. What is the present value of the investment if Tristan purchases a house in 15 years?

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  1. gandalfwiz
    • 3 years ago
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    There's a formula that can help with this: P=C(1+r)^t P=future price C=current price r= interest rate t=time

  2. gandalfwiz
    • 3 years ago
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    This will give you the interest after 15 years-- is that what is means by value of investment?

  3. LovePink
    • 3 years ago
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    okay i got $59,689.00

  4. LovePink
    • 3 years ago
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    yes

  5. gandalfwiz
    • 3 years ago
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    Let me work it out...

  6. LovePink
    • 3 years ago
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    k

  7. gandalfwiz
    • 3 years ago
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    I got 1054.08... when you multiplied by the rate, did you do 5.27 or .0527 ?

  8. LovePink
    • 3 years ago
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    0.0527

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