Solve the problem.
-Suppose that you want to have a $160,085 retirement fund after 42 years. How much will you need to deposit now if you can obtain an APR of 3%, compounded daily? Assume that no additional
Deposits are to be made to the account.

Question

Quizplus · Accepted Answer

To find the present value of the retirement fund, we use the formula for compound interest: $ P = \frac{A}{(1 + \frac{r}{n})^{nt}} $, where $ A $ is the future value, $ r $ is the annual interest rate, $ n $ is the number of times interest is compounded per year, and $ t $ is the number of years. Plugging in the values: $ A = 160,085 $, $ r = 0.03 $, $ n = 365 $, and $ t = 42 $, we calculate $ P $ to be approximately $45,408.79.

Solve the Problem. -Suppose That You Want to Have a $160,085 Retirement Fund