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Sphinxa [80]
3 years ago
14

A year ago, you deposited $30,000 into a retirement savings account at a fixed rate of 5.5 percent. Today, you could earn a fixe

d rate of 6.5 percent on a similar type account. However, your rate is fixed and cannot be adjusted. How much less could you have deposited last year if you could have earned a fixed rate of 6.5 percent and still have the same amount as you currently will when you retire 38 years from today?
Business
1 answer:
igor_vitrenko [27]3 years ago
8 0

Answer:

How much less could you have deposited last year if you could have earned a fixed rate of 6.5 percent and still have the same amount as you currently will when you retire 38 years from toda

PV=29718,30  

Explanation:

Calculte FV with interest 5,5%

F = P ( 1 + i * n )  

 

FV=30000(1+5,5%)*38  

 

FV=1202700    

Calculate PV with interest 6,5%

F = P ( 1 + i * n )  

 

1202700=x(1+6,5%)*38  

 

PV=29718,30  

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Answer:

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