SOLUTION: Suppose you want to be able to save $50,000 for college by the time you graduate four years from now. If you plan to invest in an account which earns 5% interest compounded monthly
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Question 972865: Suppose you want to be able to save $50,000 for college by the time you graduate four years from now. If you plan to invest in an account which earns 5% interest compounded monthly, how large will your initial investment have to be?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
^{nt})
^{nt}})
Where 
is the future value, 
is the present value, 
is the interest rate expressed as a decimal, 
is the number of compounding periods per year, and 
is the number of years]
For this problem 
, 
, 
, and 
. Plug in the numbers. You can do your own arithmetic.
John
My calculator said it, I believe it, that settles it
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