SOLUTION: Determine the principal P that must be invested at rate r, compounded monthly, so that $500,000 with be available for retirement in t years: r=12%, t=40

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Question 376720: Determine the principal P that must be invested at rate r, compounded monthly, so that $500,000 with be available for retirement in t years:
r=12%, t=40
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
500000=P(1+0.12/12)^40*480
P=500000/(1.01)^480
P=500000/118.648
P=4214.15