Answer:
To calculate the amount you would need to invest today to have $100,000 in 30 years with a 2.5% monthly compounded interest rate, we can use the formula for the future value of an investment:
FV = PV * (1 + r)^n
Where:
FV = Future value (desired amount)
PV = Present value (initial investment)
r = Interest rate per period (monthly interest rate)
n = Number of periods (number of months in this case)
In this case, we need to find the present value (PV), so we rearrange the formula:
PV = FV / (1 + r)^n
Let's plug in the values:
FV = $100,000
r = 2.5% / 100 = 0.025 (monthly interest rate)
n = 30 years * 12 months/year = 360 (number of months)
PV = $100,000 / (1 + 0.025)^360
Using a calculator or spreadsheet, we can solve this equation:
PV ≈ $30,321.62
Therefore, you would need to invest approximately $30,321.62 today to have $100,000 in 30 years with a 2.5% monthly compounded interest rate.
Step-by-step explanation:
I HOPE I HAVE HELPED YOU, IF YOU CAN LIKE IT AND PUT IT AS THE BEST ANSWER
