document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=120323>Question 120323</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 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?\r<BR>\n" );
document.write( "\n" );
document.write( "This is how I worked it:<BR>\n" );
document.write( "0.045X x 45 = 2,000,000<BR>\n" );
document.write( "0.045X = 44444.44<BR>\n" );
document.write( "X = 987653.33 </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #88202 by </B><A HREF=/tutors/aboutme.mpl?userid=Fombitz><B>Fombitz(32388)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Fombitz><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/cgi-bin/show-face.mpl?user=Fombitz><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=88202\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> You have to take interest compounding into account. <BR>\n" );
document.write( "Every year, you make interest to add to your sum and then in the following year, you get interst on the new sum, and so on. <BR>\n" );
document.write( "The formula is,<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=FV=P%281%2BR%29%5ET ALIGN=MIDDLE  ALT=\"FV=P%281%2BR%29%5ET\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "where FV is the future value, P is the current investement, R is the rate of return, and T is the number of time periods.<BR>\n" );
document.write( "FV=$2,000,000<BR>\n" );
document.write( "R=4.5%<BR>\n" );
document.write( "T=45 years<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P=FV%2F%281%2BR%29%5ET ALIGN=MIDDLE  ALT=\"P=FV%2F%281%2BR%29%5ET\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P=2000000%2F%281%2B0.045%29%5E45 ALIGN=MIDDLE  ALT=\"P=2000000%2F%281%2B0.045%29%5E45\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P=2000000%2F7.2482484 ALIGN=MIDDLE  ALT=\"P=2000000%2F7.2482484\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P=275928.73 ALIGN=MIDDLE  ALT=\"P=275928.73\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "To reach her goal in 45 years, she should invest $275,928.73. </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );