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Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 4 %. How much should you deposit monthly to accumulate $87,000 in 13 ​years?

Guest Mar 3, 2017
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FV=P{[1 + R]^N - 1/ R}

87,000 = P x {[1 + 0.04/12]^(13*12) - 1 / [.04/12]

87,000 = P x       [ 0.68057375.... / 0.0033333...]

87,000 = P x                            204.172125...

PMT = 87,000 / 204.172125

PMT =$426.11 - monthly deposit required to save $87,000 over 13 years @ 4% comp. monthly.

Guest Mar 3, 2017

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