menu
Qammunity.org
Login
Register
My account
Edit my Profile
Private messages
My favorites
You have been told that you need $25,600 today in order to have $100,000 when you retire 35 years from now. what rate of interest was used in the present value computation? assu…
Ask a Question
Questions
Unanswered
Tags
Ask a Question
You have been told that you need $25,600 today in order to have $100,000 when you retire 35 years from now. what rate of interest was used in the present value computation? assu…
asked
Feb 15, 2018
12.9k
views
3
votes
You have been told that you need $25,600 today in order to have $100,000 when you retire 35 years from now. what rate of interest was used in the present value computation? assume interest is compounded annually
Business
college
Gcampbell
asked
by
Gcampbell
8.2k
points
answer
comment
share this
share
0 Comments
Please
log in
or
register
to add a comment.
Please
log in
or
register
to answer this question.
1
Answer
6
votes
Hi there
The formula is
A=p (1+r)^t
A future value 100000
P present value 25600
R interest rate?
T time 35 years
We need to solve for r
R=(A/p)^(1/t)-1
R=(100,000÷25,600)^(1÷35)−1
R=0.0397×100
R=3.97% round your answer to get
R=4%
Good luck!
Thriveni
answered
Feb 21, 2018
by
Thriveni
9.0k
points
ask related question
comment
share this
0 Comments
Please
log in
or
register
to add a comment.
← Prev Question
Next Question →
Related questions
asked
Jan 8, 2018
178k
views
You have been told that you need $21,600 today in order to have $100,000 when you retire 42 years from now. what rate of interest was used in the present value computation? assume interest is compounded
Torourke
asked
Jan 8, 2018
by
Torourke
8.6k
points
Mathematics
high-school
1
answer
5
votes
178k
views
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.
9.4m
questions
12.2m
answers
Categories
All categories
Mathematics
(3.7m)
History
(955k)
English
(903k)
Biology
(716k)
Chemistry
(440k)
Physics
(405k)
Social Studies
(564k)
Advanced Placement
(27.5k)
SAT
(19.1k)
Geography
(146k)
Health
(283k)
Arts
(107k)
Business
(468k)
Computers & Tech
(195k)
French
(33.9k)
German
(4.9k)
Spanish
(174k)
Medicine
(125k)
Law
(53.4k)
Engineering
(74.2k)
Other Questions
Who was Adam Smith ? Anybody?
What can turn igneous rock into sediment?
In what way did the GI Bill contribute to the growth of professional and white-collar jobs ? A.by providing US laborers with new job-training programs B.by giving US veterans assistance to purchase a new
Twitter
WhatsApp
Facebook
Reddit
LinkedIn
Email
Link Copied!
Copy
Search Qammunity.org