Tony Peyton, age 20, would like to have $1,000,000 by the time he is 65 years of age. If Tony could earn 6.9% annual interest compounded monthly, how much must he invest now to have $1,000,000 by the time he is 65?

Answers

Answer 1

Using compound interest, it is found that he must invest $45,225 now.

Compound interest:

[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]

A(t) is the amount of money after t years.  P is the principal(the initial sum of money).  r is the interest rate(as a decimal value).  n is the number of times that interest is compounded per year.  t is the time in years for which the money is invested or borrowed.

In this problem:

He wants to have $1,000,000 in 65 - 20 = 45 years, hence [tex]t = 45, A(t) = 1000000[/tex].6.9% annual interest, hence [tex]r = 0.069[/tex].Compounded monthly, hence [tex]n = 12[/tex].

Then:

[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]

[tex]1000000 = P\left(1 + \frac{0.069}{12}\right)^{12(45)}[/tex]

[tex]P = \frac{1000000}{(1.00575)^{540}}[/tex]

[tex]P = 45225[/tex]

He must invest $45,225 now.

To learn more about compound interest, you can take a look at https://brainly.com/question/25781328

Answer 2

Answer:

He must invest $45,225


Related Questions

To attend a class field trip, each student will have to pay 3$ for a theater ticket and $2.50 for transportation. If there are 200nstudents in the class, how much money will be collected for the field trip?​

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1100

Step-by-step explanation:

because everyone will be giving 5.5 dollars and if you multiply that with 200 you get 1100

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Step-by-step explanation:

The perimeter P is the sum of the 4 sides of the rectangle.

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Answer a+ 4 - a-7 a-7 _5 = 37_6

Step-by-step explanation:

Answer:

a=-7

Step-by-step explanation:

Find least common multiplier

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Multiply to function

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Find x if f(x) = -2

Answers

Answer:

x = -12

Step-by-step explanation:

First, you want to plug in f(x)'s value into the equation.

-2 = -x-14

Then solve for x:

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Answers

The expression 5/m - (m+8)/(m^2-4m) is equivalent to 4(m-7)/m(m-4) option (C) is correct.

What is polynomial?

Polynomial is the combination of variables and constants in a systematic manner with "n" number of power in ascending or descending order.

We have a expression:

[tex]=\rm \frac{5}{m} - \frac{m+8}{m^2-4m}[/tex]

To simplified the above expression take the LCM  [tex]\rm m^2-4m[/tex]

[tex]=\rm \frac{5(m-4)-(m+8)}{m^2-4m}[/tex]

[tex]=\rm \frac{5m-20-m-8}{m^2-4m}[/tex]

[tex]=\rm \frac{4m-28}{m^2-4m}[/tex]

[tex]=\rm \frac{4(m-7)}{m(m-4)}[/tex]

Thus, the expression 5/m - (m+8)/(m^2-4m) is equivalent to 4(m-7)/m(m-4) option (C) is correct.

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Answer:

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Step-by-step explanation:

Plato/Edmentum

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Answers

Answer:

40th term = -1187

                 

Tyler's brother Works
Tyler's brother earns $12 per hour. The store offers him a raise-a 5% increase per hour.
After the raise, how much will Tyler's brother make per hour?

Answers

Answer: $12.60 per hour

Step-by-step explanation:

5% of 12 is 0.60

12 + 0.60 = 12.60

Hope you have a great day

Answer:

$12.60 per hour

Step-by-step explanation:

5% of 12 is 0.60

and 12 + 0.60 = 12.60

Hope it makes sense

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Answers

Answer:

372

Step-by-step explanation:

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Missing: group ‎| Must include: group

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i think it's A! definitely not C or D

True or false: (log x)2 = 2logx. Explain your thinking.

Answers

False
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Answers

Answer: C

Step-by-step explanation:

please help me with this question

at the first blank there are options either (y-intercept, slope, x-intercept)

second blank (positive, negative, 0, a whole number)

Answers

Answer:

y-intercept

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Step-by-step explanation:

We can determine the differences between proportional and non-proportional situations or relationships. We all need to know that linear relationships can be represented as tables, words, equations, and graphs. The non-proportional relationship will affect the y-intercept in the graph and it will no longer than zero and the ratios in the table not be proportional.

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A. The polynomial has a degree of 6

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D. The polynomial has a degree of 4

E. The polynomial has a leading coefficient of 6

Answers

Answer:

D and E are true

Step-by-step explanation:

The degree of a polynomial is the value of the largest exponent of the variable within the polynomial, that is the term

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Answers

17 is 60.7% percentage of the number 28.

What is Percentage?

percentage, a relative value indicating hundredth parts of any quantity.

We have to find what is 17 in 28.

To find this we have to multiply x with 100 and divide it by hundred which is equal to seventeen

x/100×28=17

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Answers

Step-by-step explanation:

Just sum the number of cows and buffaloes:

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Answer:

Step-by-step explanation:

here is an explanation:

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You can add 2p² and p² because they are both squared (²). -p+p=0, because the first p is negative (-). Lastly, you can add 4+1=5. Hope this helped! Lmkp if you are still confused  :) <3

question 19 of the attachment below

Answers

Answer:

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Step-by-step explanation:

Area of regular hexagon[tex]=6\times[/tex] Area of equilateral triangle

Area of regular hexagon ABCDEF with side [tex]x[/tex]

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Answers

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Answers

Scatter plots are used to relate variables using scattered dots.

The best prediction for the number of baskets made in 16 minutes is (c) 14 baskets

From the graph, we can see that the number of baskets made in 14 minutes is 12.

Also, from the graph; as the minutes increases, the number of baskets either remain the same or increases.

This means that, for 16 minutes, the number of baskets would either be 12 (same as 14 minutes) or greater.

The closest to 12 baskets in the option is 14.

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Answers

Answer:

1/6([tex]3x^{2}[/tex]+4y)

Step-by-step explanation:

the answer is 11 if you plug in -4 for x and 9/2 for y

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Answers

Answer:

Step-by-step explanation:

It can end with a 0.

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Answers

Answer:

y= -4x + 2

Step-by-step explanation:

Y= mx + b is used to find the equation of the line

m=-4 a d b= 2

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Answers

A real number is a number that can represent any continuous quantity.It includes both rational and irrational numbers.Since, -9 is a rational number, then it is a real number.

Answer:

-9 is a real number.

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Answers

Answer:

  it is

Step-by-step explanation:

The parallel horizontal sides are the same length, so the figure is a parallelogram.

Adam has $87.14. He has 10 bills and 19 coins how ? Explain how you solved it .

Answers

Answer: $42

Step-by-step explanation:

Identify the solution set of the inequality, using the given replacement set.


x < –4; {–10, –4.3, –4, –3.9, 2, 6.5}
{–10, –4.3, –4}

1.{–10, –4.3, –4}


2.{–4, –3.9, 2}


3.{–10, –4.3}


4.{–3.9, 2}

Answers

Step-by-step explanation:

es el número 4[-3.9,2] esta es la respuesta

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Answers

Answer:

32 Strawberries

Step-by-step explanation:

The amount of strawberries you need for 48 cups of juice is 32

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Answer:

5/9

step by step follow up

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Answer:

D

Step-by-step explanation:

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