Sara wants to have $600,000 in her savings account when she retires. How much must she put in the account now, if the a...

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Question

Sara wants to have $600,000 in her savings account when she retires. How much must she put in the account now, if the account

business finance

Answer 1

Answer #1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

600,000=P*(1.1)^18

P=600,000/(1.1)^18

=600,000*0.17985879

=$107915(Approx).

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Answer 2

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