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MYP Math, Financial Mathematics, Compound Interest, Present value

How can we calculate the amount to be deposit into an account to collect $140,000 at the end of 8 years if the account is paying 6% per annum compounded every month?

Thanks

How can we calculate the amount to be deposit into an account to collect $140,000 at the end of 8 years if the account is paying 6% per annum compounded every month?

Thanks

- Lucas
**Posts:**0**Joined:**Mon Jan 28, 2013 8:05 pm

MYP Math, Financial Mathematics, Compound Interest, Present value

The general compounding formula is:

Where F is the future value of the investment (=$140,000), P the principal, r is the interest rate per compound period () and n is the number of compounding periods (=8*12=96 months).

Therefore

Hope these help!

The general compounding formula is:

Where F is the future value of the investment (=$140,000), P the principal, r is the interest rate per compound period () and n is the number of compounding periods (=8*12=96 months).

Therefore

Hope these help!

- nicole
**Posts:**0**Joined:**Mon Jan 28, 2013 8:10 pm

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