Ian would like to have $250,000 in an account when he retires in 12 years. The account earns 10% per year compounded monthly. Ho
1 answer:
Answer:
$ 75,673.89
Step-by-step explanation:
The formula for compounded interest is:
here A = total value in future
P= principal amount
r= annual interest rate
n= number of times interest is compounded
t= time (in years) the interest is compounded for
Plugging in values from the question we get:
250,000 = P * (1 + 0.1/12)^(12*12)
Solving for the principal amount (P) we get $ 75,673.89
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