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7 December, 06:07

Determine the principal P that must be invested at rate r = 7%, compounded monthly, so that $500,000 will be available for retirement in t = 19 years. (Round your answer to the nearest cent.)

P = $

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  1. 7 December, 06:13
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    19 years = 228 months

    if i si the rate per month (1+i) ^12 = 1,07 = > 1 + i = 12√1,07 = 1,00565

    500 000 = (1,00565) ^ (228). x = > x = 500 000/3,616 = $138 254,16
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