We use cookies to personalise content and advertisements and to analyse access to our website. Furthermore, our partners for online advertising receive pseudonymised information about your use of our website. cookie policy and privacy policy.
 
+0  
 
0
319
1
avatar+394 

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= $_____

 Dec 5, 2017
 #1
avatar+99580 
+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

 Dec 5, 2017

15 Online Users