Popular >

Use the formula for present value of money to calculate the amount you need to invest now in one lump sum in order to have 1,000,000 after 40 years with an APR of 9% compounded quarterly. Round your answer to the nearest cent, if necessary.

Solution

Use the formula for present value of money to calculate the amount you need to invest now in one lump sum in order to have 1, 000, 000 after 40 years with an APR of 9% compounded quarterly. Round your answer to the nearest cent, if necessary.

Solution

Amount : 35.17

Solution steps

Translate the problem into an equation:

A = 1 \cdot (1 + \frac{0.09}{4})^{4 \cdot 40}

1 \cdot (1 + \frac{0.09}{4})^{4 \cdot 40} = 35.16662 \dots

Round to the nearest hundredth:

35.17

Amount : 35.17

Popular Examples

Craig opened a savings account and deposited 1,000.00. The account earns 5% interest, compounded annually. If he wants to use the money to buy a new bicycle in 3 years, how much will he be able to spend on the bike?fine three consecutive even integers whose sum 72.Find two consecutive whole numbers that sqrt(41) lies between.2 more than 3 lots of a number is equivalent to 1 less than 5 times that number Twice a number added to seven is greater than fifteen. What is the number?