Sandy knows that she needs $82,000 for a 15% down payment on a house she can afford. She found an investment that earns 3.25% interest compounding monthly. How much should she put in the account now, rounded to the nearest dollar, to ensure she has the down payment amount in 5 years?

Answer 1

P(1+.0325/12)^5 = 82000
Now just solve for P

Answer 2

$38,915 ?

Answer 3

I am sure Steve meant to say

P(1+.0325/12)^60 = 82000 , since there are 60 months in 5 years.

So recalculate your answer.

Answer 4

Reiny is correct. My bad.
How ever did you get such a low number?

Answer 5

I put it in a calculator and it came to that, I figured it was it and its also one of an answer choices.

A. 12,034
B.$38,915
C.$69,717
D.$72,374

Answer 6

clearly you pushed the wrong buttons somewhere.

Answer 7

Is it C? $69,717