SOLUTION: How much money must you invest today to have $100,000.00 for your chil'd education in 18 years, provided you can invest the money in a long-term (18 yr) account at 3.5% interest c
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: How much money must you invest today to have $100,000.00 for your chil'd education in 18 years, provided you can invest the money in a long-term (18 yr) account at 3.5% interest c
Log On
Question 439245: How much money must you invest today to have $100,000.00 for your chil'd education in 18 years, provided you can invest the money in a long-term (18 yr) account at 3.5% interest compounded monthly?
You can put this solution on YOUR website! How much money must you invest today to have $100,000.00 for your chil'd education in 18 years, provided you can invest the money in a long-term (18 yr) account at 3.5% interest compounded monthly?
.
Your equation:
A = P(1 + r/n)^(nt)
where
A = 100000
P is what you're looking for
r is .035
n is 12
t is 18
.
100000 = P(1 + .035/12)^(12*18)
100000/(1 + .035/12)^(12*18) = P
100000/(1.00292)^216 = P
100000/1.8759 = P
$53,308.04 = P
