Math

Mrs. Hart, at age 65, can expect to live for 25 years. If she can invest at 5% per annum compounded monthly, how much does she need now to guarantee herself $900 every month for the next 25 years?

math - Reiny, Friday, April 3, 2015 at 3:05pm

Present Value
= 900(1 - 1.0041666..)^-300)/.0041666...
= $153,954.05
math - Judy, Friday, April 3, 2015 at 3:33pm

Reiny, 153,954.05 is coming up wrong. any suggestions?

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  1. 900 dollars every Month...

    do you need to divide the 153,954 by the number of months in 25 years?

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    bobpursley
  2. I am not sure what happened but I got the answer .. 153,954 is correct. thanks for the help.

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