To help with his retirement savings, Hans has decided to invest. Assuming an interest rate of 3.48% compounded annually, how much would he have to invest to have 148,700 after 16 years?

Solution

To help with his retirement savings, Hans has decided to invest. Assuming an interest rate of 3.48% compounded annually, how much would he have to invest to have 148, 700 after 16 years?

Solution

Principal : 86021.74

Solution steps

Translate the problem into an equation:

148700 = P (1 + \frac{0.0348}{1})^{1 \cdot 16}

Solve for

P, 148700 = P (1 + \frac{0.0348}{1})^{1 \cdot 16} : P = 86021.74

Principal : 86021.74

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