Question

Determine the amount of money, to the nearest dollar, you must invest at 8% per year, compounded annually, so that you will be a millionaire in 26 years.

Answer 1

(1.08^26)x = 1,000,000 solve for x

x = 1 000 000 / 1.08^26 = 135,202

Answer 2

Thank You! how did you get 1.08?

Answer 3

8%......if you want to increase something by x%....multiply it by 1.0x

Answer 4

To increase something 5%...multiply by 1.05
To increase something 12% multiply by 1.12

Answer 5

oh ok so does it say to increase in the problem by 1.0 or you always do that