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sydnoelle
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Marcus wants to purchase a home in six years. He will contribute $2500 each year to a savings account with 2.64% interest, compounded semiannually. What is the future value of this investment, when Maurice needs to make a down payment?
 7 months ago
 7 months ago
sydnoelle Group Title
Marcus wants to purchase a home in six years. He will contribute $2500 each year to a savings account with 2.64% interest, compounded semiannually. What is the future value of this investment, when Maurice needs to make a down payment?
 7 months ago
 7 months ago

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sydnoelle Group TitleBest ResponseYou've already chosen the best response.0
@Lena772
 7 months ago

Lena772 Group TitleBest ResponseYou've already chosen the best response.0
I don't know, sorry.
 7 months ago

sydnoelle Group TitleBest ResponseYou've already chosen the best response.0
@dumbcow
 7 months ago

dumbcow Group TitleBest ResponseYou've already chosen the best response.0
do you have a financial calculator? if so just plug in N = 12 I = 2.64/2 PV = 0 PMT = 2500 compute FV
 7 months ago

dumbcow Group TitleBest ResponseYou've already chosen the best response.0
oh wait sorry that is not right first find effective annual growth rate \[(1 + \frac{.0264}{2})^2  1\] set this as I N = 6 PV =0 PMT = 2500
 7 months ago

sydnoelle Group TitleBest ResponseYou've already chosen the best response.0
whats next
 7 months ago

dumbcow Group TitleBest ResponseYou've already chosen the best response.0
thats it, it will compute the future value do you have a financial calculator?
 7 months ago

sydnoelle Group TitleBest ResponseYou've already chosen the best response.0
Katherine invested $1225 in a savings account which earns 3.25% interest compounded semiannually. What will the account be worth in 7 years?
 7 months ago

dumbcow Group TitleBest ResponseYou've already chosen the best response.0
haha what , that is same question as your last post i gave the formula for compound interest to solve this problem
 7 months ago

dumbcow Group TitleBest ResponseYou've already chosen the best response.0
so you have to do it by hand....hmm im guessing your class gave you a list of formulas to use then
 7 months ago

dumbcow Group TitleBest ResponseYou've already chosen the best response.0
http://en.wikipedia.org/wiki/Future_value#Compound_interest \[FV = 2500* \frac{(1+r)^n  1}{r}\] n = 6 r = .02657424
 7 months ago
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