SOLUTION: A family's plan to retire in 15 years and expect to need $500,000. Determine how much they must invest at 11.9% compounded annually to accomplish their goal.

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: A family's plan to retire in 15 years and expect to need $500,000. Determine how much they must invest at 11.9% compounded annually to accomplish their goal.      Log On


   

Question 448591: A family's plan to retire in 15 years and expect to need $500,000. Determine how much they must invest at 11.9% compounded annually to accomplish their goal.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

A family's plan to retire in 15 years and expect to need $500,000.

Let P represent the amount invested at 11.9% compounded annually

A= p(1+r/n) ^nt 

$500,000= P(1.119) ^15

 $500,000/(1.119^15) = P 

        $92,580.35 = P