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?

Question

Mercury · Answer

A = P(1+r)^(t) for annually compounding interest

P is the principal (the unknown), A is the final amount (50,000), r is the interest rate (0.06), t is time (30 years). plug in everything and solve for P