Suppose you start saving today for a $25.000 down payment that you plan to make on a house in 5 years. Assume that you make no deposits into the account after the initial deposit. For the account described below, how much would you have to deposit now to reach your $25,000 goal i years An account with daily compounding and an APR of 6% You should invest $ 20767.15 (Do not round until the final answer. Then round to two decimal places as needed.) That's incorrect. * Use the compound interest formula, where A is accumulated balance after Y years, Pis starting principal, APR is annual percentage rate (as a decimal), nis number of compounding periods per year, and Y is number of years, to determine the amount, P, that you will have to invest A=P(1. APR OK X
Suppose you start saving today for a $25.000 down payment that you plan to make on a house in 5 years. Assume that you make no deposits into the account after the initial deposit. For the account described below, how much would you have to deposit now to reach your $25,000 goal i years An account with daily compounding and an APR of 6% You should invest $ 20767.15 (Do not round until the final answer. Then round to two decimal places as needed.) That's incorrect. * Use the compound interest formula, where A is accumulated balance after Y years, Pis starting principal, APR is annual percentage rate (as a decimal), nis number of compounding periods per year, and Y is number of years, to determine the amount, P, that you will have to invest A=P(1. APR OK X
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Suppose you start saving today for a $25.000 down payment that you plan to make on a house in 5 years. Assume that you make no deposits into the account after the
initial deposit. For the account described below, how much would you have to deposit now to reach your $25,000 goal in 5 years
An account with daily compounding and an APR of 6%
You should invest $20787.15
(Do not round on the final answer. Then round to two decimal places as needed.)
That's incorrect.
Use the compound interest formula, where A is accumulated balance after Y years,
P is starting principal, APR is annual percentage rate (as a decimal), nis number
of compounding periods per year, and Y is number of years, to determine the
amount, P, that you will have to invest
APRY)
A=P 1+
OK
X
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