Suppose you start saving today for a $30,000 down payment that you plan to make on a house in 8 years. Assume that you make no deposits into the account after the initial deposit. For the account described below, how much would you have to deposit now to reach you $30,000 goal in 8 years.

Question

Suppose you start saving today for a $30,000 down payment that you plan to make on a house in 8 years. Assume that you make no deposits into the account after the initial deposit. For the account described below, how much would you have to deposit now to reach you $30,000 goal in 8 years.
An account with daily compounding and an APR of 6%
You should invest?

Henry · Answer

Use same procedure as previous problem.