Math Problem Statement

Omar wants to open an account for his grandchildren that he hopes will have $80,000 in it after 20 years. How much must he deposit now into an account that yields 1.75% interest, compounded monthly, so he can be assured of reaching his goal?

Solution

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Math Problem Analysis

Mathematical Concepts

Compound Interest
Algebra

Formulas

A = P (1 + r/n)^(nt)
P = A / (1 + r/n)^(nt)

Theorems

Compound Interest Formula

Suitable Grade Level

Grades 10-12