You estimate you will need $30,000 for a down payment on the 40 acres you plan to purchase in 5 years. How much would you have to put away today (in a lump sum) if you can earn 5% annual compound interest?

1.b. Suppose you plan to save the same amount (found above) each year for the next five years at 5% interest. How much will you need to save each year to reach your $30,000 goal?

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	Year1	Year2	Year 3	Year 4	Year 5
principal + interest
new deposit
balance

Answer rating: 100% (QA)

To calculate how much you would have to put away today to have 30000 in 5 years we can use the futur... View the full answer