Henry is going to retire in 34 years and would like to have $500,000 by that time. An investment plan has a guarantee return of 8 %, compounded monthly. How much does he need to invest today to achieve his retirement goal?
+118667 Henry is going to retire in 34 years and would like to have $500,000 by that time. An investment plan has a guarantee return of 8 %, compounded monthly. How much does he need to invest today to achieve his retirement goal?
500 000 = PV(1+0.08/12)^(34*12)
PV= 500000/((1+0.08/12)^(34*12))
500000/((1+0.08/12)^(34*12)) = $33,236
check
33236(1+0.08/12)^(34*12) = 499999.48 That is great :)
