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anonymous
 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?
anonymous
 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?

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anonymous
 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

anonymous
 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

anonymous
 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?

anonymous
 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?

anonymous
 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

anonymous
 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

anonymous
 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
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