Question 1188396
Cjane needs to raise P800,000 in 18 months. What amount should she be able to set aside now and invest in a fund earning 2% per month in order for him to reach his target amount?
<pre>With A being the present value or amount to invest NOW, we get: {{{system(matrix(1,3, A, "=", "80,000"/(1 + .02/12)^(1&1/2 * 18)), or, matrix(1,5, A, "=", "80,000"/(1 + .01/6)^18, "=", highlight(highlight_green(highlight("P776,375.80")))))}}}
My bad!! It's 2% per MONTH, but I calculated 2% per year. Tutor @IKLEYN is correct!