SOLUTION: Yumiko has just had her first child. How much money should she invest at 4% APR compouned monthly to have $50,000 18 years from now?
Algebra.Com
Question 623766: Yumiko has just had her first child. How much money should she invest at 4% APR compouned monthly to have $50,000 18 years from now?
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
Yumiko has just had her first child. How much money should she invest at 4% APR compouned monthly to have $50,000 18 years from now?
----------------
A = amount to invest
FV = future value in 18 yrs
18 yrs = 216 months
---------
FV = A*(1 + 0.04/12)^216
50000 = A*(1 + 0.01/3)^216
A = 50000/((1+0.01/3)^216
A =~ $24366.77
RELATED QUESTIONS
Your first child has just been born. You want to give her a million dollars when she... (answered by josmiceli)
1.Marina had an accident with her car and the repair bill came to $800. She didn’t have... (answered by ikleyn)
How much money should I invest to the nearest cent at 6%/a compounded monthly to have... (answered by ikleyn)
A person wishes to deposit $5,000 per year in a savings account which earns interest of 8 (answered by ikleyn)
1.Natasha borrowed $550 from her uncle for her textbooks this semester and promised to... (answered by Lightning_Fast,ikleyn)
Your goal is to create a college fund for your child. Suppose you find a fund that offers (answered by MathLover1)
Jane has $10 000 to invest. She invested part of it in a term deposit that pays 4% per... (answered by checkley71)
Betsy, a recent​ retiree, requires ​$6,000 per year in extra income. She has... (answered by ikleyn)
​Betsy, a recent​ retiree, requires ​$6,000 per year in extra income. She has... (answered by Theo,greenestamps,math_tutor2020)