How much must be deposited today into the following account in order to have 50,000 in 8 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 50,000 in 8 years for a down payment on a​ house? Assume no additional deposits are made.
An account with monthly compounding and an APR of 7​%

oobleck · Answer

P(1 + 0.07/12)^(8*12) = 50000 Now solve for P

How much must be deposited today into the following account in order to have 50,000 in 8 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 50,000 in 8 years for a down payment on a house? Assume no additional deposits are made.