SOLUTION: If I would like $75,000 in 15 years how much do I need to set aside in an account today,if the account pays an interset of 4.9% compounded semiannually? I am confused on how to us

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Question 195997: If I would like $75,000 in 15 years how much do I need to set aside in an account today,if the account pays an interset of 4.9% compounded semiannually?
I am confused on how to use the correct formula when I do not know what my current value is now?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
The formula is
A+=+P%2A%281+%2B+r%2Fn%29%5E%28nt%29
A is the amount you end up with after t years
P is amount invested initially
n is the number of times per years compounded
r is the interest rate
-----------------------------
given:
A+=+75000
t+=+15
n+=+2
r+=+.049
--------------
You need to find P
A+=+P%2A%281+%2B+r%2Fn%29%5E%28nt%29
75000+=+P%2A%281+%2B+.049%2F2%29%5E%282%2A15%29
75000+=+P%2A1.0245%5E30
P+=+75000%2A1.0245%5E%28-30%29
P+=+75000%2A.48377243
P+=+36282.93
I need to put $36,282.93 in the account
check:
A+=+P%2A%281+%2B+r%2Fn%29%5E%28nt%29
A+=+36282.93%2A%281+%2B+.049%2F2%29%5E30
A+=+36282.93%2A1.0245%5E30
A+=+36282.93%2A2.067088
A+=+74999.99 close enough