algebra

posted by .

You want to refurnish your home in 3 years. The interior decorator informs you that this will cost $25,000. What should be your payment into an account that gives 6% compounded quarterly?

  • algebra -

    25000(1+.06)^4*3

    I think that is how you would set it up.

    You may want to wait for a math tutor to verify.

  • algebra -

    the quarterly rate will be .06/4 = .015

    let the payment you make now be $x
    so
    x(1.015)^12 = 25000
    x = 25000/(1.015^12
    = 20909.69

    or you could use the formula

    PV = Amt(1+i)^-n

    present value = 25000(1.015)^-12
    = 20909.69

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    Jim wants to deposit money in an account to save for a new stereo system in two years. He wants to have $4,000 available at the time. The following rates are available to him: 6.2% simple interest 6.1% compounded annually 5.58% compounded …
  2. finance

    Today, Mark invested $5,000 into an account that guarantees 7.50% p.a., compounded monthly and Madonna invested $5,000 into account guaranteeing 8.125% p.a., compounded quarterly. How long will it take (in years) for the value of Madonna's …
  3. finance

    Today, Mark invested $5,000 into an account that guarantees 7.50% p.a., compounded monthly and Madonna invested $5,000 into account guaranteeing 8.125% p.a., compounded quarterly. How long will it take (in years) for the value of Madonna's …
  4. Business Algebra

    Invest $23,000 in a savings account at 4.25% interest compounded quarterly. Invest into an ordinary annuity where $5,000 is deposited each year into an account that earns 6.6% interest compounded annually.
  5. Math

    A couple needs $15,000 as a down payment for a home. If they invest the $10,000 they have at 8% compounded quarterly, how long will it take for the money to grow into $15,000?
  6. finance

    How much must be deposited into an account to generate a $2,400 payment every three months for the next four years if the account earns 10% compounded quarterly
  7. Mathematics and investment

    1. Angelo wants to renovate his house in 3 years. He estimates the cost 300,000. How much must Angelo invest now at 8% compounded quarterly in order to have 300,000 3 years from now. 2. Angelo Ancis want to save 500,000 in 5.5 years …
  8. Math

    You plan to make 24 equal quarterly payments (payments are at the end of each period) into an account to pays 8% (per year compounded quarterly). If you need $5,000 at the end of 10 years (i.e. 4 years after the last payment is made …
  9. Math help

    You plan to make 24 equal quarterly payments (payments are at the end of each period) into an account to pays 8% (per year compounded quarterly). If you need $5,000 at the end of 10 years (i.e. 4 years after the last payment is made …
  10. math 142

    1,000 are deposited into an account quarterly  for eight years at an interest rate of 7.87.8​% compounded quarterly. How much is in the account at the end of the 88 ​years?

More Similar Questions