Question 1128127: Determine the principal P that must be invested at rate r = 8%, compounded monthly, so that $500,000 will be available for retirement in t = 15 years. (Round your answer to the nearest cent.)
Found 2 solutions by stanbon, MathTherapy:
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Determine the principal P that must be invested at rate r = 8%, compounded monthly, so that $500,000 will be available for retirement in t = 15 years. (Round your answer to the nearest cent.)
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A(t) = P(1+(r/n))^(nt)
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500,000 = P(1+(0.08/12))^(12*15)
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500,000 = P(1.0067)^(180)
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P = 500,000/1.0067^180
P = $150,299.54
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Cheers,
Stan H.
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Answer by MathTherapy(10553)  (Show Source):
You can put this solution on YOUR website!
Determine the principal P that must be invested at rate r = 8%, compounded monthly, so that $500,000 will be available for retirement in t = 15 years. (Round your answer to the nearest cent.)
Correct answer: 
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