Answer:
$89,000
Explanation:
Explanation:
Let the salary at the beginning be A
Interest increment is i = 4.15℅
Future value aimed for is F = $215000
Number of years is n=20
The formula for the future value of a present sum is given as
F = A(1+I)^n
215000 = A(1+0.0415)^20
215000 = A(1.0415)^20
Taking log of both sides
Log215000 = LogA + 20Log1.0415
LogA = Log215000 - 20Log1.0415
LogA = 4.95
Taking anti log of 4.95
We have that ;
A = $89,000
Answer:
$95,335 (to the nearest whole number)
Explanation:
Using the formula:
Amount = A * (1/(1+r)^t
where A = Anticipated Amount = $215,000
r = rate = 4.15% = 0.0415
t = time (in years) = 20
Substituting the above in the formula:
Amount = $215,000 * (1/1+0.0415)^20
= $215,000 * 0.44341922 = $95,335 (to the nearest whole number).
Therefore, the salary he should start at to reach his goal = $95,335
