Q:1 Ten years ago, Hailey invested $1,500 and locked in a 9 percent annual inter

Question

Q:1

Ten years ago, Hailey invested $1,500 and locked in a 9 percent annual interest rate for 30 years (end 20 years from now). Aidan can make a 20-year investment today and lock in a 10 percent interest rate.

How much money should he invest now in order to have the same amount of money in 20 years as Hailey?(Do not round intermediate calculations and round your final answer to 2 decimal places.)

Ten years ago, Hailey invested $1,500 and locked in a 9 percent annual interest rate for 30 years (end 20 years from now). Aidan can make a 20-year investment today and lock in a 10 percent interest rate.

Explanation / Answer

Hailey
n=30, i=9, pv=-1,500, pmt=0, cpt fv
=15,150.38

Aidan
n=0, i=9, pmt=0, fv=-15,150.38, cpt pv
= 4,309.17

hand:
First, determine how much Hailey will have 20 years from now:
FV20 = PV -10

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