document.write( "Question 1150518: Omar will need $25,000 in 12 years for new machinery for his shop. How much should he invest now at 4.5% annual interest, compounded monthly, to reach his goal? \n" ); document.write( "

Algebra.Com's Answer #771880 by ikleyn(52779) $\"\"$ $\"About$

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document.write( "Formula for discretely compounded account is f = \r\n" );
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document.write( "where f is the future value\r\n" );
document.write( "      P is the present value\r\n" );
document.write( "      r is the interest rate per time period\r\n" );
document.write( "      n is the number of time periods.\r\n" );
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document.write( "Your time periods are in months.\r\n" );
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document.write( "p is unknown under the question.\r\n" );
document.write( "r = 4.5% / 12 = 0.045/12.\r\n" );
document.write( "n = 12 years * 12 = 144 months (time periods).\r\n" );
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document.write( "Formula becomes 25000 = .\r\n" );
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document.write( "From the formula, the required investment is  P =  = 14583.43  dollars.    ANSWER\r\n" );
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\n" ); document.write( "\n" ); document.write( "See the lesson\r
\n" ); document.write( "\n" ); document.write( " - Compound interest percentage problems \r
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