How much money must be invested into an account paying 6% annually, compounded annually, to have $500,000 in 25 years when I retire?

Question

Compound interest

Answer 1

The growth rate over 25 years is 1.06^25=4.292 approx. This is how much an investment would grow in 25 years at 6% compound interest per annum. So the original investment would need to be 500000/4.292=$116,500 approx.