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Malik would like to accumulate $73,100 for his retirement in 19 years. If his local bank promises him 6.16% compounded annually, how much he should invest today?

Malik would like to accumulate 73100 for his retirement in 19 years If his local bank promises him 616 compounded annually how much he should invest today class=

Respuesta :

Okay, here we have this:

Considering the provided information, we are going to calculate the requested principal amount, so we obtain the following:

Then we will substitute in the following formula:

P = A / (1 + r/n)^(nt)

P = 73100 / (1 + 0.0616/1)^(1*19)

P = 73100 / (1.0616)^(19)

P = 73100 / (1.0616)^(19)

P ≈ $23,477.95

Finally we obtain that he should invest today approximately $23,477.95.