Question
I want to buy a house in 5 years. I need to have a down payment of $50,000. How much do I need to have today in order to have the down payment, if I can earn 5%?
I have tried to figure this out and have arrived at 39200.00
I have tried to figure this out and have arrived at 39200.00
Answers
Reiny
let present amount be x
x(1.05)^5 = 50000
x = 50000/1.05^5 = 39176.31
x(1.05)^5 = 50000
x = 50000/1.05^5 = 39176.31