Determine the principal P that must be invested at rate r = 7%, compounded monthly, so that $500,000 will be available for retirement in t = 19 years. (Round your answer to the nearest cent.)

P = $

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Mathematics

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4 February, 11:32

Determine the principal P that must be invested at rate r = 7%, compounded monthly, so that $500,000 will be available for retirement in t = 19 years. (Round your answer to the nearest cent.)

P = $

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Felicity Benitez · Answer 1

19 years = 228 months

if i si the rate per month (1+i) ^12 = 1,07 = > 1 + i = 12√1,07 = 1,00565

500 000 = (1,00565) ^ (228). x = > x = 500 000/3,616 = $138 254,16

Determine the principal P that must be invested at rate r = 7%, compounded monthly, so that $500,000 will be available for retirement in t = 19 years. (Round your answer to the nearest cent.)P = $

Determine the principal P that must be invested at rate r = 7%, compounded monthly, so that $500,000 will be available for retirement in t = 19 years. (Round your answer to the nearest cent.)

P = $