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Bob wants $50,000 at the end of 7 years in order to make a down payment on a house.   If his bank pays 2.2% interest, compounded annually, how much must he deposit in order to reach his goal?

 Nov 18, 2022
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PV == FV / [1  +  R]^N

 

PV ==50,000 / 1.022^7

 

PV ==50,000 / 1.164544987982425685888

 

PV ==$42,935.22 - what must be deposited today.

 Nov 18, 2022

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