Anita sets a goal to have $100,000 in her account when she turns 40. What amount of money should she invest now at an APR of 4% compounded monthly to reach her goal if she is 22 this year? Round your answer to the nearest cent., This answer has not been graded yet. Account When she turns.40...What amount of money should s Submit Answer
Anita sets a goal to have $100,000 in her account when she turns 40. What amount of money should she invest now at an APR of 4% compounded monthly to reach her goal if she is 22 this year? Round your answer to the nearest cent., This answer has not been graded yet. Account When she turns.40...What amount of money should s Submit Answer
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question
![**Investment Goal Calculation**
**Problem Statement:**
Anita sets a goal to have $100,000 in her account when she turns 40. What amount of money should she invest now at an APR of 4% compounded monthly to reach her goal if she is 22 this year? Round your answer to the nearest cent.
**Instruction:**
- Use the future value formula for compound interest:
\[ FV = PV \times (1 + \frac{r}{n})^{nt} \]
Where:
- \( FV \) is the future value of the investment ($100,000)
- \( PV \) is the present value or initial investment (what we're solving for)
- \( r \) is the annual interest rate (4% or 0.04)
- \( n \) is the number of times the interest is compounded per year (12 for monthly)
- \( t \) is the number of years (40-22 = 18 years)
**Submission:**
Calculate the present value and submit your answer rounded to the nearest cent.
*Note: This problem is yet to be graded.*
**Button:**
- Submit Answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F20e1cc74-4ff7-4644-a436-99394c88c8a4%2F9b073b78-c4f8-4ffb-a88d-7df191bba857%2Fq89pqmn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Investment Goal Calculation**
**Problem Statement:**
Anita sets a goal to have $100,000 in her account when she turns 40. What amount of money should she invest now at an APR of 4% compounded monthly to reach her goal if she is 22 this year? Round your answer to the nearest cent.
**Instruction:**
- Use the future value formula for compound interest:
\[ FV = PV \times (1 + \frac{r}{n})^{nt} \]
Where:
- \( FV \) is the future value of the investment ($100,000)
- \( PV \) is the present value or initial investment (what we're solving for)
- \( r \) is the annual interest rate (4% or 0.04)
- \( n \) is the number of times the interest is compounded per year (12 for monthly)
- \( t \) is the number of years (40-22 = 18 years)
**Submission:**
Calculate the present value and submit your answer rounded to the nearest cent.
*Note: This problem is yet to be graded.*
**Button:**
- Submit Answer
![Anita sets a goal to have $100,000 in her account when she turns 40. What amount of money should she invest now at an APR of 4% compounded monthly to reach her goal if she is 22 this year? Round your answer to the nearest cent.
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(Note: The image does not contain any graphs or diagrams.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F20e1cc74-4ff7-4644-a436-99394c88c8a4%2F9b073b78-c4f8-4ffb-a88d-7df191bba857%2Fdtl05r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Anita sets a goal to have $100,000 in her account when she turns 40. What amount of money should she invest now at an APR of 4% compounded monthly to reach her goal if she is 22 this year? Round your answer to the nearest cent.
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[Submit Answer] [Viewing Saved Work] [Revert to Last Response]
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