please help
Samantha knows that she needs $22,000 for a 10% down payment on a house she can afford. She found an investment that earns 2.75% 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?

$4,320

$19,177

$13,371

$5,649

Question

please help
Samantha knows that she needs $22,000 for a 10% down payment on a house she can afford. She found an investment that earns 2.75% 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?
 
$4,320 

$19,177 

$13,371 

$5,649

anonymous · Answer

@ivettef365 @mathmate @mathstudent55

anonymous · Answer

i need help solving it @mathstudent55

anonymous · Answer

Ok now what?

mathstudent55 · Answer

Sorry. I misread the problem. It's easier than I thought.

anonymous · Answer

Lol ok omg I was getting so confused.

mathstudent55 · Answer

$F = P(1 + i)^n $
where 
F = future value ($22,000)
P = present value (unknown)
n = number of compounding periods (60)
i = interest per period expressed as decimal (0.0275/12)

anonymous · Answer

Ok can you help me solve??

mathstudent55 · Answer

$$22,000 = P(1 + \frac{0.0275}{12})^{60}$

mathstudent55 · Answer

$$22,000 = P(1.14722) $

$P = \dfrac{$22,000}{1.14722} $

$P = $19,177 $