if you want to retire at the age of 55 with a million dollars.how much would you have to investnow at the age of 18 to reach your goal if you could get

if you want to retire at the age of 55 with a million dollars.how much would you have to investnow at the age of 18 to reach your goal if you could get an average interest rate of 8%.

You have to deposit a total of =$57,985.72. You use this formula to calculate this:

PV=FV(1 + R)^-N

PV=1,000,000(1.08)^37

PV=$57,985.72

Right answer.....wrong math...well ...right, but typed wrongly

FV = PV(1+i)^n

1000000/ ((1+i)^n )= PV

1,000,000 (1.08)^-37    negative sign ( in exponenet) left out in first solution

Guest #2

You also mixed up your FV and PV. He/She wants the PV, so we have:

PV=FV(1 + R)^-N. I did mistype the - sign, but you know typos are everywhere.

FV=PV(1+i)^n  and  PV=FV(1+i)^-n    Are the SAME equations , just with the interest portion appearing on different sides.