Rich wants to have $25 000 in 5 years for a down payment on a house. How much should he invest today at 6.25% per annum, compounded quarterly? i = n = A = P = ? Present Value, P = A(1 + i)" Notice the negative exponent Therefore, he should invest $ ..today.

Rich wants to have $25 000 in 5 years for a down payment on a house. How much should he invest today at 6.25% per annum, compounded quarterly? i = n = A = P = ? Present Value, P = A(1 + i)" Notice the negative exponent Therefore, he should invest $ ..today.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Rich wants to have $25 000 in 5 years for a down payment on a house. How much should he
invest today at 6.25% per annum, compounded quarterly?
i =
n =
A =
P = ?
Present Value, P = A(1 + i)^ Notice the negative exponent
Therefore, he should invest $
..today.

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