Re: Tough Financial Problem

If using a Spread*** like Microsoft Excel, perhaps:

=PV(5%/12,12*20,-3000,0,1)

$456,470.01

Or, as an equation:

equ = (k*r*(1 - r^(-n)))/(r - 1)


equ /. {k -> 3000, r -> 1 + 0.05/12., n -> 12*20}


456,470.01


--
HTH

Dana

"Mark" <mnbayazit@xxxxxxxxx> wrote in message
news:1183765464.755983.56240@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
The problem I'm working on is actually much more difficult than this,
but here's the simple version. It's the interest I can't seem to
figure out.

How much money would you need to last you exactly 20 years, if you
spend $3000/mo but earn 5% interest, compounded monthly, on your
initial investment?



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