SOLUTION: Sharon wants to provide her niece with a gift of $150,000 to help with school expenses. How much money must she invest now to get that amount in 5 years, given that the year's inte

Algebra ->  Coordinate Systems and Linear Equations  -> Linear Equations and Systems Word Problems -> SOLUTION: Sharon wants to provide her niece with a gift of $150,000 to help with school expenses. How much money must she invest now to get that amount in 5 years, given that the year's inte      Log On


   

Question 356415: Sharon wants to provide her niece with a gift of $150,000 to help with school expenses. How much money must she invest now to get that amount in 5 years, given that the year's interest is 12% and i compounded monthly.
Please I need your help. My email address is dixoname@msn.com.
Would appreciate later today.
AnnMarie
Answer by scott8148(6628) About Me  (Show Source):
You can put this solution on YOUR website!
there are 60 compounding periods (5 * 12)
___each one is 1% (12 / 12)

150,000 = x (1 + .01)^60