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Tanja wants to establish an account that will supplement her retirement income beginning 25 years from now. Find the lump sum she must deposit today so that $500,000 will be available at the time of retirement if the interest rate is 10 %, compounded quarterly.

 

How much must Tanja invest?

P= $_____

ladiikeiii  Dec 5, 2017
 #1
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+2

 

500,000 = P  ( 1 + .10/4) ^(25 * 4)

 

500,000 =  P ( 1025)^100

 

500,000 /  (1.025)^100  =  P ≈  $42323.68  

 

 

cool cool cool

CPhill  Dec 5, 2017

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