mr smith wishes to retire in 16 years when he retires he would like to have 500000 in his bank a

Name: mr smith wishes to retire in 16 years when he retires he would like to have 500000 in his bank account mr smiths bank pays 10 per year compounded annually how much should he deposit now to a 68672
Uploaded: 2022-06-22T19:24:52-08:00
Duration: 1 min 22 s
Channel: Victor Salazar
Description: mr smith wishes to retire in 16 years when he retires he would like to have 500000 in his bank account mr smiths bank pays 10 per year compounded annually how much should he deposit now to a 68672

Question

Ramesh Rajak · Accepted Answer

Step 1: Recall the compound interest formula, which is Future Value = Present Value × (1 + r)^n.

Question

Mr. Smith wishes to retire in 16 years. When he retires he would like to have $500,000 in his bank account. Mr. Smith's bank pays 10% per year compounded annually. How much should he deposit now to attain his goal?

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