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How long would annual payments

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Reference no: EM13199600

Question 1.

James and John can afford to invest $6,000 annually in a fund that earns 3% compounded annually.   

a How many years would it take to have $50,000 for a home down payment if the first payment is made at the end of the upcoming year (year 1)?

b If the account was opened with a $15,000 deposit today, how long would it take with the $6,000 annual payments?

Question 2.

If $4,000 is invested annually at 3% compounded annually, how many years would it take to have $100,000 for a home down payment?  If the account was opened with a $15,000 deposit, how long would it take?

Reference no: EM13199600

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