Question

Lonnie is considering doing some long term investing with money that she inherited. She would like to have $50,000 at the end of 30 years. Approximately how much money would Lonnie need to put into an account earning 6% interest compounded annually in order to meet her goal?

Answer 1

A*1.06^30 = 50000 .... Solve for A

Answer 2

Multiplying by 1.06^30 adds on 6% interested compounded annually for 30 years.