Determine the principal P that must be invested at rate

Question

Determine the principal P that must be invested at rate r = 4%, compounded monthly, so that $500,000 will be available for retirement in t = 9 years. (Round your answer to the nearest cent.)

Answer 1

Principal = $349,047.06

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

A = 500000

r = .04

n = 12

t = 9

Work out the parenthesis first and raise the answer to the 108th power and divide both sides to get your answer