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

sydnoelle
 10 months 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
 10 months 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
 10 months 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
 10 months 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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