a person wishes to invest M dollars at t eh end of each month from January 2000 until the end of December 2003. If the account gives interest at the annual rate of 18% compounded monthly and the individual wishes to have $100,000 by the end of 2003, how much should be invested each month?

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a person wishes to invest M dollars at t eh end of each month from January 2000 until the end of December 2003. If the account gives interest at the annual rate of 18% compounded monthly and the individual wishes to have $100,000 by the end of 2003, how much should be invested each month?

Mathematics
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No i don't
it is \[A=P\times{(1+r)^{n}}\] where A = Amount P = Principal r = Rate of interest n = number of time period
ok now tell me for how many moths you will be investing??

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so for 3 years that's 36 months
you started investing from Jan 200 - Dec 2003 right it is 36 months
A=100,000x(1+18%)^36
a=100,000 (19)^36
so here n = 3yrs = 36 months r = 18% per annum but this will get compounded monthly so it cannot be 18%
can i leave it in the annual form and just do A=100,000x(19)^3 ?
so your formula will change right the formula that i had given u is the general formula now when it is compounded monthly in that case the formula would be \[A = P\times{(1+{{r}\over{12}})^{12n}}\]
@chrissytt17 here principal is unknown
are you getting my point?
i thought the principal is the amount that the individual wants
no what you want that you will get at what time????
the individual wishes to have $100,000 by the end of 2003, how much should be invested each month?
100,000=Px(1+r/12)^12n
where r = 18% but when you are plugging in the value of r that time convert it into decimal so r = 0.18
100,000= P x (1+.18/12)^12*3 ?
100,000= P x (1.015)^36
am i on the right track?
wait let me cross check it
i came up with about 58,513.75
no it is not correct
I followed the formula
I think I am lost
hey i was not telling you about the Annuity do you know about it?
no
you are in which class
math 118
ok do you know about time value of money
I'm not sure
\[100000 = P \times \sum_{n=1}^{36}(1.015)^n\]\]
ok solve this one you will get the exact value
the second factor on RHS is called as Present Value Interest Factor of Annuity
I don't know what that symbol is
it is summation

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