en

English

Español

Português

Français

Deutsch

Italiano

Русский

中文(简体)

한국어

日本語

Tiếng Việt

עברית

العربية

Popular Word Problems >

How much must be deposited today into an account with annual compounding and an APR of 5% in order to have 50,000 in 8 years for a down payment on a house? Assume no additional deposits are made.

Solution

Ho w m u c h m u s t b e d e p os i t e d t o d a y in t o an a cco u n t w i t h ann u a l co m p o u n d in g an d an A PR o f 5​% in or d er t o ha v e 50, 000 in 8 ye a rs f or a d o w n p a y m e n t o n a ​ h o u se ? A ss u m e n o a dd i t i o na l d e p os i t s a re ma d e .

Solution

Principal : 33841.97

Solution steps

Translate the problem into an equation:

50000 = P (1 + \frac{0.05}{1})^{1 \cdot 8}

Solve for

P, 50000 = P (1 + \frac{0.05}{1})^{1 \cdot 8} : P = 33841.97

Principal : 33841.97

Popular Examples

you deposit 5000 into a savings account. You leave it in there for a certain amount of time. There is a 2% interest rate and after a certain number of years, you withdraw the amount and have 5800. How many years did you leave the deposit in the savings account?An amount of 35,000 is borrowed for 7 years at 6.75% interest, compounded annually. If the loan is paid in full at the end of that period, how much must be paid back?(Rationalize the denominator of) 1/(2+sqrt(3))The sum of two numbers is 50 . The second number is five times the first. Find the numbers. Two numbers are in the ratio 1:11 and their sum is 15 . Find the numbers.A number added to twelve is equal to five times the number.