document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=89164>Question 89164</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The Pearsons are planning to retire in 20 years and believe that they will need $200,000 in addition to income from their retirement plan. How much must they invest today at 7.5% compounded quartely to accomplish their goal? \r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #64790 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=64790\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The Pearsons are planning to retire in 20 years and believe that they will need $200,000 in addition to income from their retirement plan. How much must they invest today at 7.5% compounded quartely to accomplish their goal? \r<BR>\n" );
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document.write( "A = P(1+r/n)^(nt)<BR>\n" );
document.write( "200,000 = P(1+0.075/4)^(4*20)<BR>\n" );
document.write( "200000 = P*4.419872484...<BR>\n" );
document.write( "P = $45,250.17<BR>\n" );
document.write( "This is the Princi;al that must be invested.<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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