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Every month Tripp deposit is $377 into an interest-bearing account to save for a down payment on a house. The interest rate on the account is 4.83% compounding twice a year. What is the present value of this investment if Tripp purchases the house in 20 years? ( show work)

A= $9832.53
B= $58,995.15
C= $57,604.02

1 Answer

2 votes
See the present value of annuity due through Google
Pvad=377×((1−(1+0.0483÷2)^(−2×20))÷(0.0483÷2))×(1+0.0483÷2)=9,832.52
User Anthonyvd
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