Burton Bush wants to retire in Arizona when he is 80 years of age. Burton, who is now 55, believes he will need $400,000 to retire comfortably. To date, he has set aside no retirement money. If he gets an interest rate of 6% compounded annually, he will have to invest today (use the tables in the handbook):

A. $92,300
B. $69,900
C. $96,500
D. $93,200

asked by Deemesha

6 years ago

1,822 views

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1

1 answer

P*1.06^25 = 400000
Now just solve for P

answered by Steve

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Question

Burton Bush wants to retire in Arizona when he is 80 years of age. Burton, who is now 55, believes he will need $400,000 to retire comfortably. To date, he has set aside no retirement money. If he gets an interest rate of 6% compounded annually, he will have to invest today (use the tables in the handbook):
A. $92,300
B. $69,900
C. $96,500
D. $93,200

Steve · Answer

P*1.06^25 = 400000 Now just solve for P