b2. YOUR PROBLEM: You decide you need a nest egg of $500,000 by the time you retire in 30 years. If your retirement account earns 4.5%% annually, what amount does the formula P = F/e" say you need to place in the savings account today in order to have the $500900 by the time you retire? EXAMPLE: A borrower tells you that he needs a loan for 6 years and 3 months and will pay you an annual rate of 5 1/2% for the loan, but will give you only $141.02 back at the end of the loan term , you should only loan him $100 today