# Future value

Not what you're looking for?

Mr. & Mrs. Corey are newlyweds and want to purchase a home, but they need a down payment of $10,000. If they want to buy their home in 2 years, how much should they save each month in their savings account that pays 3% per annum compounded monthly?

##### Purchase this Solution

##### Solution Summary

This shows how much needs to be saved to reach a given future value.

##### Solution Preview

Suppose they save x dollars each month.

The annual rate of this money is 3%, so the monthly rate is

3%/12=0.03/12=0.0025. Since the money is compounded monthly, so we should use the monthly rate 0.0025

They will buy their home in 2 ...

##### Purchase this Solution

##### Free BrainMass Quizzes

##### MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

##### Situational Leadership

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

##### Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

##### Motivation

This tests some key elements of major motivation theories.

##### Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.