sum she must deposit today so that 300,000 of retirement. if the interest rate is 7% compound quarterly

Question

Ryan wants to establish an account that will supplement her retirement beginning 25 years from now. find the lump sum she must deposit today so that 300,000 will be available at time of retirement. if the interest rate is 7% compound quarterly

Answer 1

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

 

300000 = p(1 + 0.07/4)⁴⁽²⁵⁾

300000 = p(1.0175)¹⁰⁰

300000 ≈ p(5.668155938)

 

Now solve for p.