A man nearing retirement wants to invest some money in a fund that compounds annually at a rate of 6 percent, so that in five years, he will have at least $100,000. How much money must he invest now to make that happen?
FV=future value = 100 000
PV=present value= amount to invest now
i = interest rate in decimal form = .06
n = # compounding periods = 5 for this question
Plug in the numbers and solve for PV....