How much money would you have to invest today at 8 APR compo

How much money would you have to invest today at 8% APR compounded monthly to accumulate the sum of $250,000 in 30 years? (Round your answer to two decimal places.)

Solution

A=P(1+(r/n))^nt

A=250000

r=8%=0.08

n=12

t=30

P=amount to be invested

250000=P(1+(0.08/12))^12*30

250000=P(1.0067)³⁶⁰

P=250000/(1.0067)³⁶⁰

P=22860.84$

22860.84$ to be invested today  at 8% APR compounded monthly to accumulate the sum of $250,000 in 30 years