# ALegbra

If an apartment complex will need painting in 3 1/2 years and the job will cost \$25,000, what amount needs to be deposited into an account now in order to have the necessary funds? The account pays 8% interest compounded semiannually.

(a) State the type of the problem.
future value
present value
ordinary annuity
amortization
sinking fund (I think it may be this one
(b) Answer the question. (Round to the nearest cent.)

Thank you

1. 👍 0
2. 👎 0
3. 👁 53
1. The compound interest formula is

A = P * [1 + (r/n)]^(n * t)

P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year

1. 👍 0
2. 👎 0
posted by Jessie
2. -----------------
In this case you're trying to find P, the amount that needs to be deposited now.

P = principal amount (the initial amount you borrow or deposit)
r = 0.07
t = 3.5
A = 25,000
n = 2

---------------------
Rearranging the equation to solve for P gives

P = { A / [1 + (r/n)]^(n * t) }

1. 👍 0
2. 👎 0
posted by Jessie
3. It wouldn't let me post it all together so i posted it in two.

This isn't my work I got it from YA! :D

1. 👍 0
2. 👎 0
posted by Jessie
4. Oh wait the percent is wrong!!
Follow his steps just use your numbers i guess so sorry didn't notice that!

1. 👍 0
2. 👎 0
posted by Jessie

## Similar Questions

1. ### math

If an apartment complex will need painting in 3 1 2 years and the job will cost \$25,000, what amount needs to be deposited into an account now in order to have the necessary funds? The account pays 12% interest compounded

asked by ann on February 16, 2014
2. ### Algebra

If an apartment complex will need painting in 3 1/2 years and the job will cost \$45,000, what amount needs to be deposited into an account now in order to have the necessary funds? The account pays 12% interest compounded

asked by Virginia on November 19, 2014
3. ### math

A long-term resident moves out of apartment #35 on the last day of May because they are unhappy with their neighbor, and later a new resident takes possession on June 16. You begin to wonder what the total economic cost of the

asked by esther on January 1, 2017
4. ### algebra

lean can paint her new apartment 3 hours longer than his friend,carlos.if both can do painting in 2 hours,how long will it take each one to finish the job alone?

asked by clara on January 5, 2012

Copenhaver put pay washers and dryers in an apartment complex owned by Berryman. With four years to run on the contract, Berryman kicked Copenhaver out. Within 6 months, Copenhaver had put all equipment back into service in other

asked by Ana on June 28, 2011
6. ### Economics/Math

3. Assume you own a painting. If you sold it now, you could get £500 for it. However, the amount that people will be willing to pay in the future increases by £25 in odd years (including the first one) and by £26 in even years,

asked by Susan on December 4, 2009
7. ### Physics

A plant falls from the windowsill of an apartment in a very tall building. If the floor of your apartment is 12.19 m above the ground, and it takes the plant 0.2580 seconds to cross your 9 ft window, from what height did the plant

asked by Katie on February 19, 2013
8. ### algebra

painting is purchased for \$250. If the value of the painting doubles every 5 years, then its value is given by the function V(t) = 250 • 2t/5, where t is the number of years since it was purchased and V(t) is its value (in

asked by soka on August 6, 2011
9. ### Maths A Year 12

Four years ago, an art collector bought a painting for \$32 500. He knows that this painting appreciates at 15% a year. What is this painting worth now, to the nearest \$100?

asked by Anne on June 9, 2013
10. ### inductrial engineering

The Only Organic (OO) golf complex has a first cost of \$55M, annual O&M costs of \$10M, salvage value in year 100 of \$25M, clubhouse renovation every 10 years costing \$19M (but not in year 100), and reseeding every 4 years starting

asked by Thano on July 23, 2007

More Similar Questions