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Thread: word problem

  1. 07-19-2007, 04:27 PM #1
    patti72458
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    word problem

    The Pearsons are planning to retire in 20 years and believe that they will need $200,000 in addition to income from their retirement plan. How much must they invest today at 7.5% compounded quartely to accomplish their goal?

    please help set up
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  2. 07-19-2007, 04:55 PM #2
    tkhunny
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    The setup is the important part that you are supposed to be learning.

    Look at the information given and translate to the data needed.

    Given: 7.5% Annually <== I assumed this is what is meant. It should be worded more clearly.

    Needed: 7.5%/4 Quarterly

    Given: 20 Years

    Needed: 20*4 Quarters

    Given: Future Value = 200000

    Needed: Current Value = This is what is wanted.
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