Question

Marcus wants to purchase a home in six years. He will contribute $2500 each year to a savings account with 2.64% interest, compounded semiannually. What is the future value of this investment, when Maurice needs to make a down payment?

$16,138.37

$16.351.40

$32,276.74

$32,702.79

Answer 1

@jojo4eva @*Scotto0715* @Ashleyisakitty

Answer 2

@mathslover

Answer 3

i think B

Answer 4

use the compounding formula

\[A=P(1+r/n)^{nt}\]

Answer 5

well, an annuity might seem more applicable, same concept but a smidge more involved

Answer 6

(1) 2500(1+.0264/2)^2

(2) [(1)+2500] (1+.0264/2)^2

(3) [(2)+2500] (1+.0264/2)^2

etc ...

Answer 7

B(1+.0264)/2^(6*2)
+ B(1+.0264)/2^(5*2)
+ B(1+.0264)/2^(4*2)
+ B(1+.0264)/2^(3*2)
+ B(1+.0264)/2^(2*2)
+ B(1+.0264)/2^(1*2)

so yeah, its just a more complicated looking but rather simple geometric progression

\[A=B\frac{1-k^n}{1-k}~:~k=1+r/c~:~n=6*2\]

Answer 8

ok well which choice is it

Answer 9

do the math .... or at least show some attempt at it.

Answer 10

no thanks

Answer 11

its B @sydnoelle

Answer 12

thank u @jojo4eva