Answer:
$40,351
Explanation:
Given that,
Amount of money to invest at that time = $100,000
Annual rate of interest = 9.50%
Time period, n = 10 years
Here, we assume that interest is compounded annually.
Amount = Principal × (1 + Interest rate)^n
$100,000 = Principal × (1 + 0.0950)^(10)
$100,000 = Principal × (1.095)^(10)
$100,000 = Principal × 2.47822761
$100,000 ÷ 2.47822761 = Principal
$40,351.4187 or $40,351 = Principal
Therefore, he have to invest $40,351 today to achieve his target.
