If you wish to accumulate 10% of the $1.970,000 purchase price for a new home in...

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Answer 1

Answer #1

Required amount=1,970,000*10%=197,000

We use the formula:
A=P(1+r/2)^2n
where
A=future value
P=present value
r=rate of interest
n=time period.

197,000=P*(1+0.064/2)^(2*5)

P=197,000/(1+0.064/2)^(2*5)

=197,000*0.729798602

=$143770(Approx)

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Answer 2

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