how much to invest if a customer plans to retire in 25 years?

If a customer plans to retire in 25years, and expects to need $300,000. How much will they need to invest today at 7.5% compounded quarterly?

Public Comments

1. the quarterly interest rate (decimals) = 0.075/4 = 0.01875 the period of investment(quarters) = 4*25 = 100 A = P(1+r)^n plugging in, 300,000 = P(1.01875)^100 P = 300,000 / 1.01875^100 = $46,812.20 -------------------
2. 46812.2 $ ANSWER Use formula A = P ( 1 + 7.5/400) ^100 300,000 = P ( 1 .01875)^100