Answered

Suppose you start saving today for a down payment that you plan to make on a condo in 2 years. Assume that you make no deposits into the account after your initial deposit. The account has annual compounding and an APR of 5%. How much would you need to deposit now to reach your goal in 2 years

Answer :

PARRAINGO

Based on the amount you need to save and the APR, the amount you need to deposit today is $4,535.15.

What amount should you deposit today?

The amount you need to deposit today is:
Future amount = Amount x (1 + rate) ^ number of years

Solving gives:

5,000 = Amount x (1 + 5%)²

Amount = 5,000 / 1.05²

= $4,535.14

Find out more on future value at https://brainly.com/question/24703884.

#SPJ1

Go Question: Other Questions