Solve the problem.
-You want to have a $75,000 college fund in 15 years. How much will you have to deposit now in an account with an APR of 6% and monthly compounding?

Question

Quizplus · Accepted Answer

To find the present value needed to reach $75,000 in 15 years with a 6% APR compounded monthly, use the formula: $ P = \frac{F}{(1 + \frac{r}{n})^{nt}} $, where $ F = 75000 $, $ r = 0.06 $, $ n = 12 $, and $ t = 15 $. Calculating this gives approximately $30,561.18.

Solve the Problem. -You Want to Have a $75,000 College Fund in 15