SOLUTION: Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 4%. How much should you deposit monthly to accumulate ​$82,000 in 18 ​years?

Algebra ->  Percentages: Solvers, Trainers, Word Problems and pie charts -> SOLUTION: Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 4%. How much should you deposit monthly to accumulate ​$82,000 in 18 ​years?      Log On


   

Question 1204778: Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 4%. How much should you deposit monthly to accumulate ​$82,000 in 18 ​years?
Answer by MathLover1(20849) About Me  (Show Source):
You can put this solution on YOUR website!

FV=P%28%28%281%2Br%2Fn%29%5E%28nt%29-1%29%2F%28r%2Fn%29%29

FV=82000
r=4%=0.04
t=18+years
n=12 months

82000=P%28%28%281%2B0.04%2F12%29%5E%2812%2A18%29-1%29%2F%280.04%2F12%29%29
82000+=+P%28315.592%29
P=82000+%2F%28315.592%29
P=259.83
should you deposit $259.83 monthly