Sara wants to have $ 580 comma 000 in her savings account when she retires. How much must she put in the account now, if the ac

Question

3 years ago

11

count pays a fixed interest rate of 10%, to ensure that she has $ 580 comma 000 in 18 years time?

1 answer:

asambeis [7] · Answer 1 · 2022-01-15T19:15:27+03:00

Answer:

$104,318.10

Explanation:

For computing the putting amount now i.e present value we have to applied the present value formula i.e to be shown in the attachment below:

Given that,

Future value = $580,000

Rate of interest = 10%

NPER = 18 years

PMT = $0

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $104,318.10

Sara wants to have $ 580 comma 000 in her savings account when she retires. How much must she put in the account​ now, if the ac