Question

at his sons birth, a man invested $2000 in savings at 6% for his son's college education. approximately how much, to the nearest dollar, will be available in 19 years? because of inflation, money is depreciating in real value. if the rate of inflation is 8% a year, what is the current real value, to the nearest dollar, from the preceding problem above? after 19 years, did the father and son have more or less money, as measured by current real value, than they did at the son's birth?

Answer 1

please help i really need this fast

Answer 2

6% anually or monthly?

Answer 3

annually

Answer 4

I CAN DO THIS!!!!

Answer 5

that would be very helpful

Answer 6

thank you

Answer 7

i is the effective interest rate per period. FV and PV represent the future and present value of a sum. n represents the number of periods.

FV = PV(1+i)^n

Answer 8

That is the formula, I am working on that answer for you now..

Answer 9

thank you

Answer 10

what is taking so long i need this within the next 3 or 4 minutes sorry for rushing you

Answer 11

22800 is the total im working on the 2nd half now

Answer 12

I havn't gotten the inflation rate factored in yet

Answer 13

thank you i really do appreciate this

Answer 14

30400 is what I keep getting but I dont think that's correct... Here are some resources and maybe we can figure this out by the required time..

http://en.wikipedia.org/wiki/Compound_interest

http://en.wikipedia.org/wiki/Interest

Answer 15

its alright thank you though