SOLUTION: Your first child has just been born. You want to give her a million dollars when she retires at age 64. If you invest your money at 13% compounded quarterly, how much do you need t

Question 960657: Your first child has just been born. You want to give her a million dollars when she retires at age 64. If you invest your money at 13% compounded quarterly, how much do you need to invest today so your child will have a million dollars in 64 years?
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
One million =
The formula for compound interest is:

Principle is compounded quarterly, so

-------------

You need to invest $278.06 today
check:

Take the log of both sides

OK

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