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 denominator?

Answer 1

32 quarters at 0.5 percent or 0.005 and 32 deposits of amount P
25,000 = P [ (1.005)^32 -1 ] / 0.005

Answer 2

25000 = 235 P
P = about $106

Answer 3

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