Question

If Porthos wants $25,000 after 8 years to make a down payment on a home, how much does he need to invest every quarter, into an account that pays 2% compounded quarterly?

What is the simplified numerator?

m(431439)-1

m(1.173)-1

m(1.614)-1

m(435655)-1

Answer 1

Can't figure out what those choices are , none of them make sense

i = .02/4 = .005
n = 4(8) = 32
Amount = 25000
payment ---- p

p( 1.005^32 - 1)/.005 = 25000
p(1.17304. - 1) = 125
p = $106.56

I see m(1.173)-1 , but the brackets would be in the wrong place

Answer 2

Thank you, how would i solve for the bottom portion?

Answer 3

numerator: m(1.173)-1
denominator: 0.005
answer: $107.42
hope this helps.