Question

Earl Ezekiel wants to retire in San Diego when he is 65 years old. Earl is now 50. He believes he will need $420,000 to retire comfortably. To date, Earl has set aside no retirement money. Assume Earl gets 6% interest compounded semiannually. How much must Earl invest today to meet his $420,000 goal? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Investment $

Use table https://ezto.mheducation.com/extMedia/bne/Slater_12e/Presentvalue_decimal.jpg

Answer 1

PV = FV*PV factor (6/2% @ (65-50)*2 years)

=420000*0.412=173040