SOLUTION: Suppose you want to be able to save $50,000 for college by the time you graduate four years from now. If you plan to invest in an account which earns 5% interest compounded monthly
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Question 972865: Suppose you want to be able to save $50,000 for college by the time you graduate four years from now. If you plan to invest in an account which earns 5% interest compounded monthly, how large will your initial investment have to be? Answer by solver91311(24713) (Show Source):
Where is the future value, is the present value, is the interest rate expressed as a decimal, is the number of compounding periods per year, and is the number of years]
For this problem , , , and . Plug in the numbers. You can do your own arithmetic.
John
My calculator said it, I believe it, that settles it
