SOLUTION: how much should i deposit to yeild $150000 at a compound intrese of 12% per month after 5 years please show working

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Question 351571: how much should i deposit to yeild $150000 at a compound intrese of 12% per month after 5 years please show working
Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
12% per month? That's an incredibly high interest rate.
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F=P%281%2Bi%29%5En
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I'm assuming interest is compounded monthly, N=12%2A5=60, i=0.12
150000=P%281%2B0.12%29%5E60
150000=P%28897.597%29
P=167.11
You need to deposit $167.11 today to get $150,000 in 5 years.
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In case interest is compounded annually, then N=5, i=0.12%2A12=1.44
150000=P%281%2B1.44%29%5E5
150000=P%2886.487%29
P=1734.37
You need to deposit $1734.37 today to get $150,000 in 5 years.