SOLUTION: If I would like $75,000 in 15 years how much do I need to set aside in an account today,if the account pays an interset of 4.9% compounded semiannually?
I am confused on how to us
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Question 195997: If I would like $75,000 in 15 years how much do I need to set aside in an account today,if the account pays an interset of 4.9% compounded semiannually?
I am confused on how to use the correct formula when I do not know what my current value is now?
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
The formula is
is the amount you end up with after years
is amount invested initially
is the number of times per years compounded
is the interest rate
-----------------------------
given:
--------------
You need to find
I need to put $36,282.93 in the account
check:
close enough
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