Katie Hector wants to purchase a condo in Oxford, MS, in 20 years. The cost of the condo is expected to be $180,000. Assuming she can earn 6% annually, what should Katie deposit today?

Question

$126,900

Answer 1

P*1.06^20 = 180000
P = 56125

with a deposit of 126900, she only needs 1.76% interest. How did you arrive at that figure?

Answer 2

56124