Hi:) please help me out on this accounting by explaining how you attained the an

Question

Hi:) please help me out on this accounting by explaining how you attained the answer

1A. Jack would like to go on a European vacation in 5 years and estimates that he will need $20,000. What amount should he invest today in order to have $20,000 in 5 years assuming he will earn 4% in interest annually.

1B. Lucy would like to retire today. She would like to receive $50,000 per year for the next 10 years before she starts receiving her social security. How much does she have to invest today assuming she will earn 6% interest annually

Explanation / Answer

1A.

1B. She should invest $368,004

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