Math question

Question

In 6 years Ed and Trixie would like to have $20,000 for a down payment on a house. How much should they deposit each quarter into an account paying 10.0% compounded quarterly?

 

Quarterly payment: ????

Answer 1

A = down payment

t = time

r = rate

P = deposit

n = the number of times compounded per year

 

Use the formula:

 

A=P(1+(r/n))^nt

 

A = 20000

t = 6

r = 0.10

n = 4

 

Knowing this find P