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Math Help - Investment word problem

  1. #1
    Junior Member
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    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
    Last edited by kcsteven; March 13th 2007 at 10:21 AM. Reason: forgot some of the problem
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  2. #2
    Super Member

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    Lexington, MA (USA)
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    Hello, Keith!

    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.

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