Determine the principal P that must be invested at rate
r = 3
1
2
%,
compounded monthly, so that $400,000 will be available for retirement in
t = 16
years
P(1 + 0.035/12)^(12*16) = 400000
now just solve for P as usual
r = 3
1
2
%,
compounded monthly, so that $400,000 will be available for retirement in
t = 16
years
now just solve for P as usual