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Suppose you know that in t years you need g dollars, and you know the prevailing interest rate is 100x% per year. For example, upon
Suppose you know that in t years you need g dollars, and you know the prevailing interest rate is 100x% per year. For example, upon birth of a child you might want to know how much money you need to put into an account that will grow to a sum large enough to finance college expenses in 18 years. Announce what your goat in ollars is. Announce how long you are willing to wait for it. Assume a constant interest rate of 5% compounded 12 times a year and calculate how much money you need to put into an account today to achieve your goal in your specified time
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