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

Algebra ->  Customizable Word Problem Solvers  -> Finance -> 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      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

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) About Me  (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.