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Goshia [24]
3 years ago
11

Thurston wants to retire in Nevada when he is 80 years of age. Thurston, who is now 55, believes he'll need $400,000 to retire c

omfortably. To date, he has set aside no retirement money. To get an interest rate of 6% compounded annually, he'll have to invest today. Using the tables found in the textbook, determine how much he must invest. A. $96,500 B. $69,900 C. $93,200 D. $92,300
Mathematics
1 answer:
Ghella [55]3 years ago
7 0

Answer:

The amount he must invest is $93200

Step-by-step explanation:

We are given

Amount is $400000

A=400000

interest rate is 6%

r=0.06

t=80-55=25 years

P is amount to be invested

we can use formula

A=P(1+r)^t

now, we can plug values

400000=P(1+0.06)^{25}

P=93199.452

P=93200


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