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A bank is paying 6% p.a compound interest (compounding annually). How much should I deposit now if I wish to have $10,000 in my account 5 years from now?

 Nov 3, 2018
 #1
avatar+102948 
+2

We have

 

10000  = P  ( 1 + .06)^5       divide both sides by (1 + .06)^5

 

10000 / (1 + .06)^5   =  P  ≈  $7472.58

 

 

 

cool cool cool

 Nov 3, 2018

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