Question

You have just received $10,000 witch which you can do anything. You have decided to invest the money over a long period of time and then use it to make a down payment on a vacation home. There is an investment available to you, which will pay 8 percent for 30 years. Calculate the amount you will have from this investment for the down payment after 30 years, using the proper factor tabular value and using the proper factor formula value.

Answer 1

is there compounding

Answer 2

10,000*(1+08/p)^(30*p)

Answer 3

is that the answer? ^^

Answer 4

p=# of compounding periods, if annual compounding then p=1 and the calculator can compute the FVF