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 $600,000 will be available at time of retirement, if the interest rate is 10%, compounded quarterly.
+2668 There are 4 quarters in a year, and we have a period of 25 years, so there are 4 x 25 = 100 quarters.
So, the account is \(1.1^{100} = 13780.6123398\) times the initial deposit.
So, we have \(13780.6123398x = 600,000\), meaning \(x \approx \color{brown}\boxed{43.54}\)
