Question

Rob Herndon, an accountant with Southwest Airlines, wants to retire 50% of

Answer 1

For Rob Herndon to achieve his goal of paying off $430,000 in 10 years, he needs to make $34,186.97 at 5% compounded annually.

What is a future value?

A future value refers to a value on a future date based on an assumed growth rate of interest over some period.

The future value can be determined using the FV formula or table.

We can also compute the future value using an online finance calculator as follows:

Data and Calculations:

N (# of periods) = 10 years

I/Y (Interest per year) = 5%

PV (Present Value) = $0

FV (Future Value) = $430,000

Results:

PMT = $34,186.97

Sum of all periodic payments = $341,869.70

Total Interest= $88,130.30

Thus, for Rob Herndon to achieve his goal of paying off $430,000 in 10 years, he needs to make $34,186.97 at 5% compounded annually.

Learn more about determining Future Values at brainly.com/question/24703884

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