document.write( "Question 1202020: You want to have $500,000 when you retire in 10 years. If you can earn 3% interest compounded weekly, how much would you need to deposit now into the account to reach your retirement goal? \n" ); document.write( "

Algebra.Com's Answer #836682 by ikleyn(52814) $\"\"$ $\"About$

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\n" ); document.write( "You want to have $500,000 when you retire in 10 years.
\n" ); document.write( "If you can earn 3% interest compounded weekly, how much would you need to deposit now
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\n" ); document.write( "\n" ); document.write( "            @Theo got something completely mixed up while reading the problem, \r
\n" ); document.write( "\n" ); document.write( "            so his solution is incorrect and you better ignore it.\r
\n" ); document.write( "\n" ); document.write( "            I came to bring you a correct solution.\r
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document.write( "Use the formula for discretely compounded account \r\n" );
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document.write( "      f = p * (1 + r) ^ n\r\n" );
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document.write( "where f is the future value\r\n" );
document.write( "      p is the principal (the deposited amount)\r\n" );
document.write( "      r is the interest rate per time period, presented as a decimal\r\n" );
document.write( "      n is the number of time periods.\r\n" );
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document.write( "Your time periods are weeks.\r\n" );
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document.write( "f = 500000 dollars.\r\n" );
document.write( "r = 0.03/52.\r\n" );
document.write( "n = 10 years * 52 = 520 weeks.\r\n" );
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document.write( "Formula becomes 500000 = ,  which gives\r\n" );
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document.write( "    p =  = 370441.16  to the nearest cent.    ANSWER\r\n" );
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\n" ); document.write( "\n" ); document.write( "Solved.\r
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\n" ); document.write( "\n" ); document.write( "To see many other similar (and different) solved problems on compounded interest accounts, look into the lesson\r
\n" ); document.write( "\n" ); document.write( " - Compounded interest percentage problems \r
\n" ); document.write( "\n" ); document.write( "in this site.\r
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\n" ); document.write( "\n" ); document.write( "Learn the subject from there and become an expert. \r
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