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 #854456 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(53846)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><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/cgi-bin/show-face.mpl?user=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=854456\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .<BR>\n" );
document.write( "An investor needs $18000 in 20 years; a finance company is offering 6% compounded monthly. <BR>\n" );
document.write( "How much should they invest now?<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In his post, @lwsshak3 incorrectly read the problem - so, his numbers in calculations are irrelevant\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to the problem and his answer is incorrect.\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I came to provide a correct solution.\r<BR>\n" );
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document.write( "compound interest formula: A = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P%281%2Br%2Fn%29%5E%28nt%29 ALIGN=MIDDLE  ALT=\"P%281%2Br%2Fn%29%5E%28nt%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >, where\r<BR>\n" );
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document.write( "P = initial investment <BR>\n" );
document.write( "r = interest rate, <BR>\n" );
document.write( "n = number of compounding periods per year, <BR>\n" );
document.write( "A = amount after t years\r<BR>\n" );
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document.write( "For given problem:<BR>\n" );
document.write( "P = ?<BR>\n" );
document.write( "r = 0.06<BR>\n" );
document.write( "n = 12<BR>\n" );
document.write( "t = 20<BR>\n" );
document.write( "A = 18000\r<BR>\n" );
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document.write( "18000 = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P%281%2B.06%2F12%29%5E%2812%2A20%29 ALIGN=MIDDLE  ALT=\"P%281%2B.06%2F12%29%5E%2812%2A20%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "18000 = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P%281%2B.005%29%5E240 ALIGN=MIDDLE  ALT=\"P%281%2B.005%29%5E240\"   DISABLED_style= \"max-width:90%; height:auto;\" > = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P%281.005%5E240%29 ALIGN=MIDDLE  ALT=\"P%281.005%5E240%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >.\r<BR>\n" );
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document.write( "P = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=18000%2F1.005%5E240 ALIGN=MIDDLE  ALT=\"18000%2F1.005%5E240\"   DISABLED_style= \"max-width:90%; height:auto;\" > = 5437.730549\r<BR>\n" );
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document.write( "How much should they invest now ? $5437.73 rounded to the closest cent.    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>ANSWER</U>\r<BR>\n" );
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document.write( "Solved correctly.\r<BR>\n" );
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