Burton Bush wants to retire in Arizona when he is 80 years of age. Burton, who is now 55, believes he will need $400,000 to retire comfortably. To date, he has set aside no retirement money. If he gets an interest of 6 percent compounded annually, he will have to invest today: (Use the tables in the handbook)
$92,300
$69,900
$96,500
$93,200
None of these

Question

Burton Bush wants to retire in Arizona when he is 80 years of age. Burton, who is now 55, believes he will need $400,000 to retire comfortably. To date, he has set aside no retirement money. If he gets an interest of 6 percent compounded annually, he will have to invest today: (Use the tables in the handbook)
 $92,300
 $69,900
 $96,500
 $93,200
 None of these

hero · Answer

Hint: 

$$A = P(1 + \frac{r}{n})^{nt}$$

A = 400,000 
r = .06
t = 12
n = 80 - 55
P = one of the answer choices