How much money should I invest at an annually compounded interest rate of 5% so that I have $500,000 in ten years?
FV = PV (1+.05)n
FV = Future Value = 500 000 PV = Present Value = amount to invest now .05 = interest rate n = number of years=10
Can you take it from here? (this assumes a one time investment now)
FV = PV (1+.05)n
FV = Future Value = 500 000 PV = Present Value = amount to invest now .05 = interest rate n = number of years=10
Can you take it from here? (this assumes a one time investment now)
i don't think i got it from there :( here's what i thought:
now that i know all the variables(thanks to you!) i have:
500,000=(1.05)10p
500,000=10.5p
but then dividing both sides by 10.5 gives me a really funky number (47619.0476) so i don't think it's right.. what did i do wrong??
Sorry...I mislead you just a bit....the 'n' should be a supescript....I fixed it above....do you see it should be (1.05)n