Divide 7% into $240 dollars and hat should get you your answer.
hope this helps!
<span> However 4(4x-3) -6x can be replaced by 16x-12 -6x using the distributive law then we may combine like terms to obtain 10x -12. RESPONSE TO UPDATE .. Since you provided the choices in your update, the choices equivalent to 10x -12 are A 12x -12 - 2x and C. 4x + 2(3x-6)</span>
The following formula is applicable;
A=P(1+r)^n
Where,
A = Total amount accrued after 10 years (this is the amount from which the yearly withdrawals will be made from for the 30 years after retirement)
P=Amount invested today
r= Annual compound interest for the 10 years before retirement
n= Number of years the investments will be made.
Therefore,
A= Yearly withdrawals*30 years = $25,000*30 = $750,000
r= 9% = 0.09
n= 10 years
P= A/{(1+r)^n} = 750,000/{(1+0.09)^10} = $316,808.11
Therefore, he should invest $316,808.11 today.
