+0  
 
+1
119
4
avatar+5 

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.

bruis11  Jun 8, 2018
 #1
avatar+13048 
+1

FV = PV (1 + i)^n   

FV=future value = 500000

i = interest = .05

n = years = 10

PV= present value....the amount you have to invest now

 

500,000 = PV (1+.05)^10      Solve for PV

ElectricPavlov  Jun 8, 2018
 #2
avatar+90023 
+1

500,000  =  A (1.05)^10   divide both sides by (1.05)^10

 

500,000/(1.05)^10  = A ≈ 

 

$306,956,63

 

 

cool cool cool

CPhill  Jun 8, 2018
 #3
avatar+13048 
+1

Way to go Chris !  I knew you could do it with just a little help !    Haha.....

ElectricPavlov  Jun 8, 2018
 #4
avatar+90023 
0

I couldn't have done it without  your help, EP....LOL!!!

 

 

cool cool cool

CPhill  Jun 8, 2018

9 Online Users

avatar

New Privacy Policy

We use cookies to personalise content and advertisements and to analyse access to our website. Furthermore, our partners for online advertising receive information about your use of our website.
For more information: our cookie policy and privacy policy.