Homework Help: math

Posted by kitty on Tuesday, July 24, 2012 at 5:30pm.

if you want to save $60000 in 7 years with APR 4% daily compounding and no additional deposits, how much would your initial deposit be

math - Henry, Thursday, July 26, 2012 at 7:11pm
P = Po(1+r)^n = $60,000.

P = $60,000 = Amount after 7 years.
Po = Initial deposit.
r = (4%/360) / 100% = 0.000111111 = Daily % rate expressed as a decimal.
n = 360Comp./yr * 7yrs.=2520 Compounding
periods.

Po(1.000111111)^2520 = 60,000
Po=60000 / (1.000111111)^2520=%45347.74

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