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

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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

business finance

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Answer 1

Answer #1

The amount is computed as shown below:

Present value = future value / ( 1 + r)ⁿ

= $ 25,000 / 1.032⁵

= $ 21,357.06 Approximately

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Answer 2

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