SOLUTION: James and susan wishes to save 10,000 in 2 years. how much money should they set aside now at 6% compounded monthly in order to reach their goal.

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Question 955760: James and susan wishes to save 10,000 in 2 years. how much money should they set aside now at 6% compounded monthly in order to reach their goal.
Answer by Alan3354(69443) About Me  (Show Source):
You can put this solution on YOUR website!
James and susan wishes to save 10,000 in 2 years. how much money should they set aside now at 6% compounded monthly in order to reach their goal.
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2 years = 24 compounding periods
6% per yr = 0.5% per month
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10000 = Amt*(1.005)^24
Amt = 10000/(1.005)^24
=~ 8871.86