You want to have 100,000 when you retire in 10 years. If you can earn 5% interest compounded monthly, how much would you need to deposit now into the account to reach your retirement goal?

Solución

You want to have 100, 000 when you retire in 10 years. If you can earn 5% interest compounded monthly, how much would you need to deposit now into the account to reach your retirement goal?

Solución

Principal : 60716.1

Pasos de solución

Translate the problem into an equation:

100000 = P (1 + \frac{0.05}{12})^{12 \cdot 10}

Resolver para

P, 100000 = P (1 + \frac{0.05}{12})^{12 \cdot 10} : P = 60716.1

Principal : 60716.1

Ejemplos populares

Find the future value and interest earned if 8704.56 is invested for 9 years at 6% compounded semiannually.The circunferencia of a circle is 16𝜋 centimeters. What is the area?The quotient of two more than the square of a number and the number.Suppose that 5500 is placed in an account that pays 2% interest compounded each year. Assume that no withdrawals are made from the account. Find the amount in the account at the end of 1 year.Megan opened a savings account and deposited 1,331.00. The account earns 1% interest, compounded quarterly. If she wants to use the money to buy a new bicycle in 3 years, how much will she be able to spend on the bike?