Question

Jacob would like to have $50,000 when he turns 40 (so he can throw a big party for all his former teachers!) he has about 35 years to invest his money. If he found an account that earns 4.5%intrist annually, how much must he invest NOW to have $50,000 for the party?

Answer 1

Jacob must now invest $10,712,72 to have $50,000 for the party.