Thread: word problem find investement

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??
Thankx,
Keith

Originally Posted by kcsteven

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??
Thankx,
Keith

i think you posted this question already, i'm pretty sure. you said you had no problems with the first part of the question. but our issue with the second part was that no time limit was given. "how much would an 18 year old have to invest at each of these annual interest rates to accumulate $1,000,000 ...by what time? 2 years from now? 15 years? twenty? by tomorrow?"