SOLUTION: Wilma wants to have $2,000,000.00 when she retires in 45 years. Assuming that she can average 4.5% return anually in treasury bills, then how much must she invest now in treasu

Algebra ->  Finance -> SOLUTION: Wilma wants to have $2,000,000.00 when she retires in 45 years. Assuming that she can average 4.5% return anually in treasury bills, then how much must she invest now in treasu      Log On


   

Question 120322:
Wilma wants to have $2,000,000.00 when she retires in 45 years. Assuming that she can average 4.5% return anually in treasury bills, then how much must she invest now in treasury bills to achieve her goal?
This is how I worked it:
0.045X x 45 = 2,000,000
0.045X = 44444.44
X = 987653.33
Answer by checkley71(8403) About Me  (Show Source):
You can put this solution on YOUR website!
X(1.045)^45=2,000,000
7.248X=2,000,000
X=2,000,000/7.248
X=275,938.19 AMOUNT TO BE INVESTED NOW.