Question

---> Every month, Tristan deposits $488 into an interest-bearing account to save for a down payment on a house. The interest rate on the account is 5.27% compounding annually. What is the present value of the investment if Tristan purchases a house in 15 years?

Answer 1

There's a formula that can help with this: P=C(1+r)^t

P=future price
C=current price
r= interest rate
t=time

Answer 2

This will give you the interest after 15 years-- is that what is means by value of investment?

Answer 3

okay i got $59,689.00

Answer 4

yes

Answer 5

Let me work it out...

Answer 6

k

Answer 7

I got 1054.08... when you multiplied by the rate, did you do 5.27 or .0527 ?

Answer 8

0.0527