math

posted by .

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 -

    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

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance

    You have just placed $1,500 in a bank savings deposit and plan to hold that deposit for eight years, earning 5½ percent per annum. If the bank compounds interest daily, what will be the total value of the deposit in eight years?
  2. Bus Finance

    I have inherited $40,000. I want to save it for 5 years to make down payment on new home. I get info from two diff banks. Bank A - 5.78% APR with semi annual compounding. Bank B - 5.75% APR with daily compounding. Which bank would …
  3. math

    You want to have $85,000 college fund in 15 years. HOw much will you have to deposit now under the scenario below. Assume that you make no deposits into the account after the initial deposit An APR of 4% compounded daily. You should …
  4. math

    Suppose you start saving today for a $30,000 down payment that you plan to make on a house in 8 years. Assume that you make no deposits into the account after the initial deposit. For the account described below, how much would you …
  5. Math

    If I had a 4,0000 deposit at an apr of 5.6% with quarterly compounding, how much would I have after four years?
  6. Math

    How much must be deposited today into the following account in order to have $35,000 in 6 years for a down payment on a​ house?
  7. Math

    How much must be deposited today into the following account in order to have$120000 in 14 years ?
  8. math

    28.Nadia intends to get married in eight years time. She estimates that the cost of the wedding will be RM20000 then. She intends to save this amount by making equal monthly deposits at the end of each month in a bank that pays 5% …
  9. math

    Nadia intends to get married in eight years time. She estimates that the cost of the wedding will be RM20000 then. She intends to save this amount by making equal monthly deposits at the end of each month in a bank that pays 5% compounded …
  10. Math

    You want to have $60,000 college fund in 12 years. How much will you have to deposit now under the scenario below. Assume that you make no deposits into the account after the initial deposit. An APR of 8​% compounded daily. I know …

More Similar Questions