Asked by Anonymous

Sandy knows that she needs $82,000 for a 15% down payment on a house she can afford. She found an investment that earns 3.25% interest compounding monthly. How much should she put in the account now, rounded to the nearest dollar, to ensure she has the down payment amount in 5 years?
Answered by Steve
P(1+.0325/12)^5 = 82000
Now just solve for P
Answered by Anonymous
$38,915 ?
Answered by Reiny
I am sure Steve meant to say

P(1+.0325/12)^60 = 82000 , since there are 60 months in 5 years.

So recalculate your answer.
Answered by Steve
Reiny is correct. My bad.
How ever did you get such a low number?
Answered by Anonymous
I put it in a calculator and it came to that, I figured it was it and its also one of an answer choices.

A. 12,034
B.$38,915
C.$69,717
D.$72,374
Answered by Steve
clearly you pushed the wrong buttons somewhere.
Answered by Anonymous
Is it C? $69,717
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