+0  
 
-2
138
2
avatar+965 

How much money should I invest at an annually compounded interest rate of 5% so that I have $500,000 in ten years? Express your answer as a dollar value rounded to the nearest cent.

 Mar 30, 2020
 #1
avatar
+1

FV = PV x [ 1 + R]^N

 

500,000 =PV x 1.05^10

500,000 =PV x 1.62889462677744140625

PV =500,000 / 1.6288946............

PV =$306,956.63

 Mar 30, 2020
 #2
avatar+112409 
+1

500000  =  A( 1 + .05)^ 10        divide  both sides by  ( 1 + .05)^10

 

500000/ ( 1 + .05)^10  =  A  ≈  $306956.63

 

cool cool cool

 Mar 30, 2020

47 Online Users

avatar
avatar
avatar