Question
How much must be deposited today into the following account in order to have$120000 in 14 years ? No additional deposits are made. An account with quarterly compounding and an APR of 7.4% ?
Answers
Let X be the money must be deposited today.
120000=X*(1+(7.4%/4))^(4*14)
120000=X*2.791372958...
X=42989.59753
So in order to have $120000 in 14 years, at least deposit $42990 in to bank.
120000=X*(1+(7.4%/4))^(4*14)
120000=X*2.791372958...
X=42989.59753
So in order to have $120000 in 14 years, at least deposit $42990 in to bank.