Annually, Travis deposits $3,500 into an interest-bearing account to save for a down payment on a house. The interest rate on the account is 5.46% compounding twice a year. What is the present value of the investment if Travis purchases a house in 18 years?

Question

anonymous · Answer

@rational

anonymous · Answer

Now this one is asking for the present value instead of the future value in the last equation..  Lemme see if I can find a formula

anonymous · Answer

Answer choices: 
 $39,793.23
 $40,879.59
 $79,586.46
 $81,759.17

anonymous · Answer

attachment

rational · Answer

https://www.wolframalpha.com/input/?i=%28%283500%2F2%29*%28%281%2B0.0546%2F2%29%5E%282*18%29-1%29%2F%280.0546%2F2%29%29%2F%28%281%2B0.0546%2F2%29%5E%282*18%29%29

rational · Answer

Just used the previous FV formula and divided by `(1+i)^nt` to get the PV

anonymous · Answer

Yeah that's the same answer I came to :)

anonymous · Answer

Know anything about balloon mortgages?

rational · Answer

its been a long time.. but if u can post the formulas we can work

anonymous · Answer

Alright