Question 131379: The question is:
How much must you invest each quarter in a bond fund yielding 9.7% compounded quarterly to become a millionaire in 20 years?
For some reason I'm completely stuck.
Answer by edjones(8007)   (Show Source):
You can put this solution on YOUR website! Let A=1,000,000, r=.097, n=4, t=20 P=principal
.
A=P(1+ r/n)^nt
1000000=P(1+ .097/4)^(4*20)
P=10^6/(1.02425)^100
=10^6/10.9799...
=$91,075.75 Final answer
.
Ed
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