Intermediate Algebra for College Students (7th Edition)

Published by Pearson
ISBN 10: 0-13417-894-7
ISBN 13: 978-0-13417-894-3

Chapter 11 - Section 11.3 - Geometric Sequences and Series - Exercise Set - Page 858: 120


The answer is $\$50410$.

Work Step by Step

Let The deposit value is $P$. Final retirement fund is $A=\$1,000,000$. Time period $t=30$ years. Compounded monthly $n=12$ Rate of interest per annum $r=10\%=0.10$ The formula is $A=P\left ( 1+\frac{r}{n} \right )^{nt}$ $1,000,000=P\left ( 1+\frac{0.10}{12} \right )^{12\cdot 30}$ $1,000,000=P\left ( \frac{12.10}{12} \right )^{360}$ $1,000,000=P\left ( 19.8373993733 \right )$ Isolate $P$. $\frac{1,000,000}{19.8373993733}=P$ $50409.8335262=P$ Rounding to the nearest dollar $P=\$50410$.
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