Purchase Solution

Business Math

Not what you're looking for?

Ask Custom Question

If you want to save $25,000 for a down payment on a house and you have ten years to save this amount, how much would you need to save monthly to achieve this goal if the interest rate is 5% compounded monthly? What happens if you can increase your interest rate to 8%? Come up with your own example of compound interest different than the one in question.

Purchase this Solution

Solution Summary

The expert examines compounding interest for business math.

Solution Preview

In this problem, we are calculating the future value of an annuity.

Let C represent the amount of money saved every month, then:
FV=C/i*((1+i)^n-1)
FV = ...

Purchase this Solution


Free BrainMass Quizzes
IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Operations Management

This quiz tests a student's knowledge about Operations Management

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.