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Earl Ezekiel wants to retire in San Diego when he is 65 years old. Earl is...

Earl Ezekiel wants to retire in San Diego when he is 65 years old. Earl is now 55. He believes he will need $410,000 to retire comfortably. To date, Earl has set aside no retirement money. Assume Earl gets 4% interest compounded semiannually.
  
How much must Earl invest today to meet his $410,000 goal?(Do not round intermediate calculations. Round your answer to the nearest cent.)

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Answer #1

Present value = Future value / (1+( rate per annum/compounding per year))^ (no. of year*compounding per year)

= 410000 /(1+(.04/2))^(10*2)

= 410000/1.02^20

= 410000/1.48594739598

= $275918.25

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