Math Problem Statement
Use the savings plan formula to answer the following question. Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 6 %. How much should you deposit monthly to accumulate $85 comma 000 in 13 years? Question content area bottom Part 1 You should invest $
enter your response here each month. (Do not round until the final answer. Then round to two decimal places as needed.)
Solution
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Math Problem Analysis
Mathematical Concepts
Algebra
Future Value
Interest Rates
Savings Plans
Formulas
Future Value of Savings Plan FV = P × ((1 + r)^n - 1) / r
Monthly interest rate r = APR / 12
Number of months n = Years × 12
Theorems
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Suitable Grade Level
Grades 10-12
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