Mr. Smith wishes to retire in 13 years. When he retires he would like to have $300,000 in his bank account. Mr. Smith's bank pays 8% per year compounded annually. How much should he deposit now to attain his goal?

a) $110,306.38
b) $110,309.38
c) $110,305.38
d) $110,307.38
e) $110,311.38
f) None of the above.

Question

Mr. Smith wishes to retire in 13 years. When he retires he would like to have $300,000 in his bank account.  Mr. Smith's bank pays 8% per year compounded annually.  How much should he deposit now to attain his goal?

a) $110,306.38
b) $110,309.38
c) $110,305.38
d) $110,307.38
e) $110,311.38
f) None of the above.

anonymous · Answer

(300000x.08)13

can mods hop off the d now im helpful as heck

tkhunny · Answer

$Deposit\cdot 1.08^{13} = $300,000$?