SOLUTION: The Derrys plan to retire in 15 years and expect to need $30,000. Determine how much they must invest today at 8.9% compounded quarterly to accomplish thier goal.

Algebra ->  Customizable Word Problem Solvers  -> Misc -> SOLUTION: The Derrys plan to retire in 15 years and expect to need $30,000. Determine how much they must invest today at 8.9% compounded quarterly to accomplish thier goal.      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 20281: The Derrys plan to retire in 15 years and expect to need $30,000. Determine how much they must invest today at 8.9% compounded quarterly to accomplish thier goal.
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
A=P(1+r/n)^(nt)
30000=P(1+0.089/4)^[4(15)]
30000=P(1.022)^60
30000=P(3.745)
P=$8011.14 (amount they need to put in the bank now)
Cheers,
Stan H.