In 8 years Joey and Monica would like to have $14000 for a down paym.pdf

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umamaheshwari991

In 8 years Joey and Monica would like to have $14000 for a down payment on a house. How much should they deposit each half-year into an account paying 8% compounded semi-annually? Answer = $ ?? Solution Let x be the amount deposited each half year so, we have x(1 + r/2)16 = 14000 => x = 14000/1.0416 = 7474.71 Answer = $ 7474.71.

In 8 years Joey and Monica would like to have $14000 for a down payment on a house. How
much should they deposit each half-year into an account paying 8% compounded semi-annually?
Answer = $ ??
Solution
Let x be the amount deposited each half year
so, we have x(1 + r/2)16 = 14000
=> x = 14000/1.0416 = 7474.71
Answer = $ 7474.71

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