Question
Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 5%. How much should you deposit monthly to accumulate $83,000 in 18 years?
Answers
oobleck
Just use your formula to solve for P
P((1+.05/12)^(12*18) - 1)/.05 = 83000
P((1+.05/12)^(12*18) - 1)/.05 = 83000
mathhelper
The divisor should have been .05/12 , not .05