Super question (1 Viewer)

[poonslayer69]

fuaaark, cannot get this out.

A retirement fund pays 8% per annum compound interest on the money invested
in it. What investment must a worker make at the beginning of each year if he
wishes to retire with a lump sum of $200 000 after 25 years (with his last
investment at the beginning of the 25th year)?

 

[skillstriker]

Is the answer $2533.11?

 

[RishBonjour]

is it $2533?


edit: same as the guy above ^

 

[Mr Slick]

yup

 

[RishBonjour]

yup

LOL. top quote man.

 

[poonslayer69]

yeah it is , how you guys do it?

 

[Mr Slick]

yeah it is , how you guys do it?

by using something called brain

 

[Keelan134]

Annuities formula. Principal x a x r^n -1 allover r-1

Rearrange to make p subject.

If you really need it a=1.08
R=1.08
N=25