Let's use the compound interest formula,
where,
A=final amount
P=initial principal balance
r=interest rate
n=number of times interest applied per time period
t=number of time periods elapsed
Given,
time or periods, t = 25 years
rate, r = 10% = 0.10
A = $45,000 * 25 = $1,125,000
n = 1 , Assuming that interest is compounded annually
Solution,
Let's replace the above,
Solve for P
Answer: $103,833.00