I am having trouble coming up with the number for n :
Lisa will invest some money on July 3, her sixteenth birthday, at 4.5% per year, compunded monthly. How much should she invest if she wants to have $ 10,000 on the November 3 following her eighteenth birthday?
I have found
i= 0.045/12= 0.00375
n= ? ( not sure how to get this)
Thank you for the help;)
Dec 2nd 2008, 11:44 AM
This formula should do the trick..
where P is the amount she should invest, A=10000, r is the rate, n is the number of times the interest is compounded per year, and t is number of years, here 24+4/12..