document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=997954>Question 997954</A>: <I><SPAN STYLE=\"word-break: break-all;\"> An investor needs $18000 in 20 years; a finance company is offering 6% compounded monthly. How much should they invest now? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #615903 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=615903\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> An investor needs $18000 in 20 years; a finance company is offering 6% compounded monthly. How much should they invest now?\r<BR>\n" );
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document.write( "compound Interest formula: A=P(1+r/n)^nt, P=initial investment r=interest rate, n=number of compounding periods per year, A=amt after  t- years<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "P=?<BR>\n" );
document.write( "r=.6%<BR>\n" );
document.write( "n=12<BR>\n" );
document.write( "t=20<BR>\n" );
document.write( "A=8000\r<BR>\n" );
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document.write( "8000=P(1+.06/12)^12*20<BR>\n" );
document.write( "8000=P(1+.005)^240=P(1.005^240=3.3102<BR>\n" );
document.write( "P=8000/3.3102=2416.77<BR>\n" );
document.write( " How much should they invest now?$2416.77<BR>\n" );
document.write( " </SPAN>\n" );
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