Question 1003495: An investor wants to have a retirement nest egg of $100,000 and estimates that her investment now will grow at 4% compounded continuously for 30 years. What amount should she invest now to achieve this goal? (do not approximate until your final answer)please include steps
Found 2 solutions by lwsshak3, josgarithmetic:
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! An investor wants to have a retirement nest egg of $100,000 and estimates that her investment now will grow at 4% compounded continuously for 30 years. What amount should she invest now to achieve this goal? (do not approximate until your final answer)please include steps
Formula for continuous compounding: A=Pe^rt, P=initial investment, r=interest rate, A=amt after t-years
100,000=Pe^.04*30
P=100,000/e^1.2=$30,119.42
What amount should she invest now to achieve this goal?$30,119
Answer by josgarithmetic(39630) (Show Source):
|
|
|
