Asked by Adalheidis

$800,000 if your rate of return is 5.3% compounded monthly

If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth after 10 years?

Answers

Answered by MathMate
Is this a continuation of the post
http://www.jiskha.com/display.cgi?id=1482086783 ?
If it is, it would be another advantage to keep your pen name the same (except using anonymous), because otherwise tutors cannot assume continuation and have to ask for details.

Is $800,000 the future value in 20 years?
Answered by Steve
P(1+r)^20 = P(1+r)^10 * (1+r)^10

So, the amount after 10 years is

800000/(1+.053/12)^(12*10) = 471433.81
Answered by Adalheidis
Your answer is wrong the correct answer is $296,631.79
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