SOLUTION: A family's plan to retire in 15 years and expect to need $500,000. Determine how much they must invest at 11.9% compounded annually to accomplish their goal.
Hi,
A family's plan to retire in 15 years and expect to need $500,000.
Let P represent the amount invested at 11.9% compounded annually
A= p(1+r/n) ^nt
$500,000= P(1.119) ^15
$500,000/(1.119^15) = P
$92,580.35 = P