If Porthos wants $25,000 after 8 years to make a down payment on a home, how much does he need to invest every quarter, into an account that pays 2% compounded quarterly?
How much will Athos pay quarterly
All i have is this and im not sure what im doing wrong exactly.
Plz help.
25,000 = m (1 + 0.02 / 4 over 0.02/4) 4*8 -1
12500= m (1+0.02/4)^32-1
12500=m (1.005)^32-1
12501= m (1.005)^32
12501=m 32.16
I first answered you here:
https://www.jiskha.com/questions/1820653/if-porthos-wants-25-000-after-8-years-to-make-a-down-payment-on-a-home-how-much-does-he
You clearly did not like my correct answer, and you posted again, making Damon
doing it all over again obtaining the same answer.
https://www.jiskha.com/questions/1820658/if-porthos-wants-25-000-after-8-years-to-make-a-down-payment-on-a-home-how-much-does-he
Now you are posting the same question again!!!!!!
My apologies, but, there are 3 parts to the question. numerator, denominator and then fully figuring out how what they will pay quarterly. :/
Ive tried this problem multiple times and still am unable to figure out how to calculate the final answer to the last part of the 3 step question.
numerator: m(1.173)-1
denominator: 0.005
answer: $107.42
hope this helps.
To calculate the amount Porthos needs to invest every quarter, you can use the future value formula for compound interest. The formula for future value is:
FV = PV * (1 + r/n)^(n*t)
Where:
FV = future value
PV = present value (the amount to be invested every quarter)
r = interest rate (in decimal form)
n = number of compounding periods per year
t = number of years
In this case, Porthos wants to save $25,000 in 8 years, and the interest rate is 2% compounded quarterly. So, we can plug the values into the formula:
25000 = PV * (1 + 0.02/4)^(4*8)
Simplifying the equation:
25000 = PV * (1.005)^32
To solve for PV (the amount to be invested every quarter), divide both sides of the equation by (1.005)^32:
PV = 25000 / (1.005)^32
Calculating this using a calculator, you will get:
PV ≈ $538.54
Therefore, Porthos needs to invest approximately $538.54 every quarter to save $25,000 in 8 years.
Regarding Athos' payments, it seems like there is missing information in your question. Could you please provide more details about Athos' situation?