SOLUTION: Hi, I'm trying to solve the problem listed below. However, I'm 99.99% sure I'm using the incorrect formula. My question is, would you be able to let me know the proper formula

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Question 1068500: Hi,
I'm trying to solve the problem listed below. However, I'm 99.99% sure I'm using the incorrect formula. My question is, would you be able to let me know the proper formula I use? (I always confuse myself re: which formula to used based on the way in which the problem is worded.)
"Suppose you want to accumulate $120,000 for your retirement in 30 yrs. You have two choices: Plan A is a single deposit into an account with annual compounding and an APR of 5% interest. Plan B is a single deposit into an account with continuous compounding and an APR of 4.8%. How much do you need to deposit in each account in order to reach the goal?
Plan A:
P = ?
Y = 30
n = 1
APR = 0.05
A = $120,000
Plan B:
P = ?
Y = 30
n = 1
APR = 0.048
A = $120,000
I tried multiple formulas and would receive extremely large amounts as an answer.
As an example -- using Plan A as a reference -- one of the many formulas I tried is:
$120000(1+0.05/1)^(1*30) = 518633.085 (?) this is when I realize I'm using the incorrect formula.
Also, is there any easy way to remember when to use a formula based on the way a problem is worded?
Thanks for any help you can provide.
Answer by Fombitz(32388) (Show Source):
You can put this solution on YOUR website!
Annually,

.
.
.
Continuously,