Question 623766: Yumiko has just had her first child. How much money should she invest at 4% APR compouned monthly to have $50,000 18 years from now? Answer by Alan3354(69443) (Show Source):
You can put this solution on YOUR website! Yumiko has just had her first child. How much money should she invest at 4% APR compouned monthly to have $50,000 18 years from now?
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A = amount to invest
FV = future value in 18 yrs
18 yrs = 216 months
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FV = A*(1 + 0.04/12)^216
50000 = A*(1 + 0.01/3)^216
A = 50000/((1+0.01/3)^216
A =~ $24366.77
