How much must be deposited today into the following account in order to have $35,000 in 6 years for a down payment on a house? Assume no additional deposits are made.

Question

How much must be deposited today into the following account in order to have $35,000 in 6 years for a down payment on a​ house? Assume no additional deposits are made.
An account with annual compounding and an APR of 7​%

Damon · Answer

35000 = a (1.07)^6 so a = 35000 / (1.07)^6

How much must be deposited today into the following account in order to have $35,000 in 6 years for a down payment on a​ house? Assume no additional deposits are made.

How much must be deposited today into the following account in order to have $35,000 in 6 years for a down payment on a house? Assume no additional deposits are made.