Find P given A You decided to retire and put all your money at PUC Bank. How muc

Question

Find P given A You decided to retire and put all your money at PUC Bank. How much do you have to deposit now, if you want to receive $50,000 every year for the next 10 years? Find A given F If you want $150,000 for your son going to a college in five years, how much do you have to save to get every year at PUC Bank that offers %10 annual interest on your savings? Find A given P If you decided to retire and deposit $300,000 at PUC Bank that offers %10 annual interest on your deposit, what would you get each year for the next 10 years?

Explanation / Answer

A= P(1+r/n)nt

A=amount after time

P=principal amount

r= annual nominal interest rate

n=number time the interest is compunded

t=number of years

ANS-

a-)if you want to recieve $50,000 for 10 years

Then A= 50000*10=500000

ans is $500000.

b-)A=$150,000, t=5,r=10,n=1

by putting these value in the formula A= P(1+r/n)nt

P= 93138.2.
Hence for every year you need to deposit $18627.4 (93138.2/5).

c-) P=$300,000,t=10,r=10,n=1

by putting these value in the formula A= P(1+r/n)nt

A=778122.6

A=P+I So I=478122.6

annually you will recieve $77812.26

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