SOLUTION: Wilma wants to have $2,000,000 when she retires in 45 years. Assuming that she can average 4.5% return annually in Treasury Bills, then how much must she invest now in Treasury Bil

Question 185426This question is from textbook
: Wilma wants to have $2,000,000 when she retires in 45 years. Assuming that she can average 4.5% return annually in Treasury Bills, then how much must she invest now in Treasury Bills to achieve her goal? This question is from textbook

Answer by checkley77(12844) (Show Source): You can put this solution on YOUR website!
x(1+.045)^45=2,000,000
x(1.045)^45=2,000,000
x=2,000,000/(1.045)^45
x=2,000,000/7.248
x=$275,938 is the amount needed to invest now to have $2,000,000 in 45 years @ 4.5% annually.
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