Sara wants to have $500,000 in her savings account when she retires. How much must she put in the account now, if the account pays a fixed interest rate of 8%, to ensure that she has $500,000 in 20 years' time?

Question

Quizplus · Accepted Answer

The correct answer is A.The present value of $500,000 in 20 years at an interest rate of 8% is $107,274. This is the amount that Sara must put in the account now to ensure that she has $500,000 in 20 years' time.

Sara Wants to Have $500,000 in Her Savings Account When