Problem
?etin Ikmen, the owner of Sackville Plastics, has been investing $400 per month since the end of January 2010 to create a venture capital fund for his daughter to start her own business when she turns 25 at the end of January in 2030. The investment fund is expected to earn an average of 6% APR annually (compounded monthly).
1) How much will she have to start her business?
2) How much interest will be earned over the 20 years?
3) He wanted to have $250,000 saved. How much should he have been saving at the end of each month?
4) It is too late to change his saving pattern, so it will just take longer to accumulate $250,000. Approximately how long will it take?