Question
If an apartment complex will need painting in
3
1
2
years and the job will cost $25,000, what amount needs to be deposited into an account now in order to have the necessary funds? The account pays 12% interest compounded semiannually.
3
1
2
years and the job will cost $25,000, what amount needs to be deposited into an account now in order to have the necessary funds? The account pays 12% interest compounded semiannually.
Answers
Steve
if you meant 3 1/2 years, then you will need
25000/(1+.12/2)^(2*3.5) = $16,626.43
25000/(1+.12/2)^(2*3.5) = $16,626.43