Charles would like to accumulate $340,000 for her retirement in 10 years. If she is promised a rate of 4.29% compounded quarterl

Question

2 years ago

11

y by her local bank, how much should she invest today?

1 answer:

Slav-nsk [51] · Answer 1 · 2023-12-08T11:14:39+03:00

Answer:

$221,990.70

Step-by-step explanation:

here we need to apply the formula for future value ,,,,

Future Value = Present value (1+r/m)^mt

we insert the values we have in their respective positions. 4 29% = 0.0429 when we convert it by dividing by 100%

340, 000 = PV (1+0.0429/4)^4×10

340, 000/1.5322 = PV

PV = $221,990.70