Question

Marissa knows that she needs $35,000 for a down payment on a house. She found an investment that earns 3.25% interest compounding monthly. She would like to purchase the home in 5 years. How much should she put in the account now to ensure she has her down payment?

Answer 1

ok so use the formula A=a(1+r)^t

Answer 2

HOW MUCH?LMAO

Answer 3

I've tried that . not as easy as you think

Answer 4

You have to be serious.

Answer 5

its ok :) A=30,000 right? that is the amount she wants to get right? r=.0325 and t=5

Answer 6

plug those in and solve for a

Answer 7

algebra 2 sucks!

Answer 8

lol yes it does. I used to hate it, but you still have to do it. ill walk you through it. 1+.0325 is 1.0325 right? raise that to the fifth power and what do you get?

Answer 9

I got 1.212 then divide 30,000/1.212=$24,752.48 final awnser

Answer 10

that answer is incorrect

Answer 11

you have to include the compounded monthly

Answer 12

35000(1.0325)^(5)(12)

Answer 13

238,490.82