You need to have $35,000 for a down payment on a house 7 in years. If...

Question

Question

You need to have $35,000 for a down payment on a house 7 in years. If...

You need to have $35,000 for a down payment on a house 7 in years. If you can earn an annual interest rate of 3.4 percent, how much will you have to deposit today?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

The amount needed to be deposited today is calculated using the PV function:-

=PV(rate,nper,pmt,fv)

=PV(3.4%,7,,35000)

=27696.46

Add a comment

Answer 2

Similar Homework Help Questions

You need to have $30,000 for a down payment on a house 6 in years. If...

You need to have $30,000 for a down payment on a house 6 in years. If you can earn an annual interest rate of 3.3 percent, how much will you have to deposit today?
ou need to have $25,000 for a down payment on a house 5 in years. If...

ou need to have $25,000 for a down payment on a house 5 in years. If you can earn an annual interest rate of 3.2 percent, how much will you have to deposit today? Multiple Choice $18,828.80 $20,548.18 $20,847.13 $21,357.06 $20,694.83
You are going to deposit $4,300 in an account that pays.69 percent interest per quarter. How...

You are going to deposit $4,300 in an account that pays.69 percent interest per quarter. How much will you have in 6 years? You need to have $35,000 for a down payment on a house 4 in years. If you can earn an annual interest rate of 4.9 percent, how much will you have to deposit today?

You just graduated from college and decide to start saving for a down payment to buy a house 5 years from today. You est...

You just graduated from college and decide to start saving for a down payment to buy a house 5 years from today. You estimate you will need $20,000 in 5 years for the down payment. (Note: a down payment is a deposit a home buyer must make in order to get a mortgage loan from a bank to buy the house.) 1. Assume you can earn 6% interest (APR) on your savings, and you want to make a single deposit...
If you desire to have $23,000 for a down payment for a house in six years,...

If you desire to have $23,000 for a down payment for a house in six years, what amount would you need to deposit today? Assume that your money will earn 3 percent. Use Exhibit 1-C. (Round your PV factor to 3 decimal places and final answer to the nearest whole dollar.) $_________
If you desire to have $10,000 for a down payment for a house in seven years, what amount would you need to deposit today...

If you desire to have $10,000 for a down payment for a house in seven years, what amount would you need to deposit today? Assume that your money will earn 6 percent. Use Exhibit 1-C. (Round time value factor to 3 decimal places and final answer to the nearest whole number.)

You want to have $78,000 in 16 years to help your child attend college. If you...

You want to have $78,000 in 16 years to help your child attend college. If you can esrn an annual interest rate of 3.4 percent, how much will you have to deposit today? You want to have $78,000 in 16 years to help your child attend college. If you can earn an annual interest rate of 3.4 percent, how much will you have to deposit today? Multiple Choice $45,684.20 $44,182.01
2. If you desire to have $10,000 for a down payment for a house in five...

2. If you desire to have $10,000 for a down payment for a house in five years, what amount would you need to deposit today? Assume that your money will earn 5 percent. (Hint I have told you the future value therefore you are attempting to figure out the present value. Also, the question asks what are you depositing today not annually over 5 years therefore, this is 1 single deposit.)
2. I want to buy a house in 5 years. I need to have a down...

2. I want to buy a house in 5 years. I need to have a down payment of $50,000. How much do I need to have today in order to have the down payment, if I can earn 4%?

1. You are planning to buy a new house. You currently have $35,000 and your bank told you that you would need a 15%...

1. You are planning to buy a new house. You currently have $35,000 and your bank told you that you would need a 15% down payment plus an additional 4% in closing costs. If the house that you want to buy costs $250,000 and you can make a 7% annual return on your Investment, determine the following: a) b) When will you have enough money for the down payment and closing costs, assuming that the $35,000 is the only investment...

You need to have $35,000 for a down payment on a house 7 in years. If...

Homework Answers

Add Answer to:
You need to have $35,000 for a down payment on a house 7 in years. If...

Post as a guest

Earn Coins

You need to have $30,000 for a down payment on a house 6 in years. If...

ou need to have $25,000 for a down payment on a house 5 in years. If...

You are going to deposit $4,300 in an account that pays.69 percent interest per quarter. How...

You just graduated from college and decide to start saving for a down payment to buy a house 5 years from today. You est...

If you desire to have $23,000 for a down payment for a house in six years,...

If you desire to have $10,000 for a down payment for a house in seven years, what amount would you need to deposit today...

You want to have $78,000 in 16 years to help your child attend college. If you...

2. If you desire to have $10,000 for a down payment for a house in five...

2. I want to buy a house in 5 years. I need to have a down...

1. You are planning to buy a new house. You currently have $35,000 and your bank told you that you would need a 15%...

You need to have $35,000 for a down payment on a house 7 in years. If...

Homework Answers

Add Answer to: You need to have $35,000 for a down payment on a house 7 in years. If...

Post as a guest

Earn Coins

Add Answer to:
You need to have $35,000 for a down payment on a house 7 in years. If...