A community for students.
Here's the question you clicked on:
 0 viewing
sydnoelle
 2 years ago
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?
sydnoelle
 2 years ago
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?

This Question is Closed

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

dumbcow
 2 years ago
Best ResponseYou've already chosen the best response.0oh 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

dumbcow
 2 years ago
Best ResponseYou've already chosen the best response.0thats it, it will compute the future value do you have a financial calculator?

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

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

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

dumbcow
 2 years ago
Best ResponseYou've already chosen the best response.0http://en.wikipedia.org/wiki/Future_value#Compound_interest \[FV = 2500* \frac{(1+r)^n  1}{r}\] n = 6 r = .02657424
Ask your own question
Sign UpFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.