Mrs. Hart, at age 65, can expect to live for 25 years. If she can invest at 5% per annum compounded monthly, how much does she need now to guarantee herself $900 every month for the next 25 years?

Question

math - Reiny, Friday, April 3, 2015 at 3:05pm

Present Value
    = 900(1 - 1.0041666..)^-300)/.0041666...
    = $153,954.05
    math - Judy, Friday, April 3, 2015 at 3:33pm

Reiny, 153,954.05 is coming up wrong. any suggestions?

bobpursley · Answer

900 dollars every Month... do you need to divide the 153,954 by the number of months in 25 years?

Judy · Answer

I am not sure what happened but I got the answer .. 153,954 is correct. thanks for the help.