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?
A)$107,274
B)$144,616
C)$180,884
D)$231,480

Question

Quizplus · Accepted Answer

The correct answer is A because $107,274 invested at 8% interest for 20 years will grow to $500,000.

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