Question 2 part 3 QRB/ 501 week 5 A school teacher has an existing money market account, but this account cannot provide the interest he need.

Question 2 part 3

QRB/ 501 week 5

A school teacher has an existing money market account, but this account cannot provide the interest he need. He want to use annual compounding on an account that will pay 5.5 % interest annually. He needs to invest a certain amount  to have $8000 in 5 years for down payment on a house.

Future Value needed (FV)    _$8000.00___________________________________

Quoted rate                          _5.5%___________________________________

Compounding frequency    __1______________________________________-

Number of compounding frequency (m) ________________________________     *Choose one

Quoted rate divided by m = rate        ____________________________________

Number of years                  ________5__________________________________

NPER(num. of years*m)        __________________________________________

Amount Invested now (PV)

     Choose quarterly, type4, for semiannually, type 2, annually, type 1, daily, type 365.