# Investment word problem

• Mar 13th 2007, 09:06 AM
kcsteven
Investment word problem
How much money must be invested now at 6% per annum compounded monthly to grow into one million dollars.
15 years from now
25 years from now
35 years from now

I have done other problems in our book that are similar to this one and I know I use the same formula P = A(1+i)^-N but the questions they were asking pertained to how much would an 18 year old have to invest at each of these annual interest rates to accumulate \$1,000,000
a) 2% b(4% c)6% and I just used the calculator and made a table using the equation and plugging in for y1 in the calc. example: Y1 = 1,000,000(1+x/100)^-42 Do I make a table for this one also?? Please give me a push!
Thankx,
Keith
• Mar 13th 2007, 10:03 AM
Soroban
Hello, Keith!

Quote:

How much money must be invested now at 6% per annum compounded monthly
to grow into one million dollars?

If no time period is given, it's a silly problem . . .

We can invest \$995,024.88 now and have a million in one month

or we can invest \$1 now and wait for 231.834 years for our million.