You plan to retire in 30 years and would like to have $1,000,000 in investments. How much money would you have to invest today at a 7% annual interest rate compounded daily to reach your goal in 30 years? (Assume all years have 365 days. Round your answer to the nearest cent.)

Use the compound interest formula.

Let A = the ending amount

Let P = the principal

Let r = the interest rate

Let n = the amount compounded a year

Let t = time

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

Substitute your numbers in

1,000,000 = P (1 +.07/365) ^ (365/30). Divide each side by (1 +.07/365) ^ (365/30).

365 / 30 = 10,950

1,000,000 / (1 +.07/365) ^ (10,950) = P. Calculate your value for P.

$122,481.09 = P