Asked by L

Juan and Rachel Burpo plan to buy a time-share in six years of $16,860. In order to have adequate funds to do so, the Burpo want to make a deposit to their money market fund today. Assume that they will be able to earn an investment rate of 5.75%, compounded annually. How much will Juan and Rachel need to deposit today to achieve their goal? (Round off to the nearest dollar.)
How do you compute the compounded annually?
Answered by Henry
P = Po(1+r)^n.

P = $16,860.

r = 5.75%/100 = 0.0575

n = 1Comp./yr. * 6yrs. = 6 Compounding periods.

Po = ?.

Answered by Anonymous
12,055.22
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