2. How much must you deposit today into an account with quarterly compounding interest and an APR of 6% in order to have $30,000 in 10 years for a down payment on a house? Assume no additional deposits are made. How much of the money saved is interest?

2. How much must you deposit today into an account with quarterly compounding interest and an APR of 6% in order to have $30,000 in 10 years for a down payment on a house? Assume no additional deposits are made. How much of the money saved is interest?

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Related questions

Q: How much must you deposit today into each of the following accounts in order to have $25,000 in 8…

A: Given the amount in the account after 8 years is $25,000.Also given that the amount compounded daily…

Q: Find the amount in the account at the end of 1 year. $

Q: The annual interest rate on a credit card is 16.99%. If a payment of $100.00 is made each month,…

Q: Mary wants to accumulate $42,000 in a fund with payments of $2,100 made at the end of every quarter.…

A: We know that the formula is A=P1+rnnt where A=total amount,P=initial principal amount,r=rate of…

Q: How much must be deposited today into the following account in order to have $75,000 in 5 years for…

Q: How much must you deposit today into an account with quarterly compounding interest and an APR of…

A: please comment if you need any clarification. If you find my answer useful please put thumbs up.…

Q: Use the formula for continuous compounding to compute the balance in the account after 1, 5, and 20…

A: if you find my answer helpful please put thumbs up. thank you. the required solution is given below…

Q: You would like to have $6,000 in four years for a special vacation following graduation bymaking…

A: Future Value of an Ordinary Annuity FormulaThe future value ( FV ) of an ordinary annuity formula,…

Q: A company has borrowed $500,000. The loan is to be repaid in quarterly payments over 20 years.…

Q: In order to accumulate enough money for a down payment on a house, a couple deposits $467 per month…

Q: Tara bought a property by agreeing to make semi-annual payments of $2000 for twelve years. If the…

A: First we need to find the future value or the total amount paid by Tara. Then we can find the…

Q: What payment is required at the end of each month for 10 years to repay a $200,000 mortgage if…

Q: Consider an investment of $1,500 for four years at 3.75% simple interest. a. Find the amount of…

Q: How much must be deposited today into the following account in order to have a $105,000 college fund…

Q: mpounding interest and an APR of 4.5% in sume no additional deposits are made.

A: Given as, 8 years is $25,000 and APR of 4.5%.

Q: Suppose you obtain a $5000 Treasury Note with a 3% annual rate, paid quarterly, with a maturity in 2…

A: See the attachment

Q: 1. Enrique takes out a student loan to pay for his college tuition this year. Find the interest on…

Question

2. How much must you deposit today into an account with quarterly compounding interest and an APR of 6% in
order to have $30,000 in 10 years for a down payment on a house? Assume no additional deposits are made.
How much of the money saved is interest?

Expert Solution

Step 1

$(2)$ Given information

$A = $ 30, 000$

$A P R = 6 %$

$\Rightarrow r = \frac{6}{100} = 0.06$

Time $t = 10 y e a r s$

Since, rate of interest compounded quarterly

Hence, $n = 4$

Used formula:- $A = P {(1 + \frac{r}{n})}^{n t}$

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

you would like to save for a car. you would like to have $20,000 saved in 4 years. you decide to make payments at the end of each month into an account earning 5.9% interest per year compoundied monthly for the next 4 years in order to accumulate the desired amount. what size payments should be made? how much toral interest did they earn on the investment over 4 years?
A loan is repaid with payment of $7209 at the end of each quarter for 11 years. If interest on the loan is 9.2%, compound monthly, what is the initial value of the loan
Suppose a 40-year old person deposits $8000 per year in an individual retirement account until age 65. Find the total in the account with the following assumption of an interest rate. (Assume quarterly compounding, with payments of $2000 made at the end of each quarter period.). Find the total amount of interest earned. 7% The total in the account $___. (Round to the nearest CENT as needed.)
Dustin deposits $800 at the end of every 3 months in an RRSP that is earning 5.10% compounded semi-annually. For the RRSP to accumulate to $33,000, calculate the following: a. How many deposits will she have to make? Round up to the next whole number b. How long will she have to make these deposits? years months Express the answer in years and months, rounded to the next payment period
Calculate the amount of simple interest you would pay on a loan of $20,000 at a rate of 5.6% per annum for three years
Jesse purchases a retirement annuity that will pay him $1,500 at the end of every six months for the first nine years and $600 at the end of every month for the next three years. The annuity earns interest at a rate of 3.5% compounded quarterly. a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Jesse receive from the annuity?
How much must be deposited today into the following account in order to have $50,000 in 5 years for a down payment on a house? Assume no additional deposits are made. An account with quarterly compounding and an APR of 7.6%
Travis saved $120 at the end of every month for 7 years in her bank account that earned 6.90% compounded monthly. a. What is the accumulated value of her savings at the end of the period? $12,718.64 $12,911.77 $54,457.77 $2,831.77 b. What is the interest earned over the period? $2,711.77 $12,911.77 $2,951.77 $2,831.77
How much must be deposited today into the following account in order to have $70,000 in 8 years for a down payment on a house? Assume no additional deposits are made. An account with annual compounding and an APR of 6% should be deposited today. Do not round until the final answer. Then round to the nearest cent as needed.)
3. You put $2000 into an account that earns 3.5% APR compounded monthly. a. How much will you have at the end of 10 years? b. What is the monthly interest rate of this account?
How much must be deposited today into the following account in order to have a $130,000 college fund in 16 years? Assume no aditional deposits are made. An account with annual compounding and an APR of 4.8% $ should be deposited today. (Do not round until the final answer. Then round to the nearest cent as needed.)
You would like to have $25,000 set aside for your child’s college fund in 12 years by making regular,semiannual deposits in an annuity that pays 6% compounded quarterly. How much should you deposit at the end of every four months? Round to the nearest cent.