We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
600,000=P*(1.1)^18
P=600,000/(1.1)^18
=600,000*0.17985879
=$107915(Approx).
Sara wants to have $600,000 in her savings account when she retires. How much must she put in the account now, if the a...
Sara wants to have $600,000 in her savings account when she retires, How much must she put in the account now, if the account pays a fixed interest rate of 10%, to ensure that she has $600,000 in 818 years time? a. $194,247 b. $107,915 c. $114,639 d. $151,081
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