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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.

tertre  Apr 18, 2018
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2+0 Answers

 #1
avatar+12266 
+1

FV=500000

PV= ?

i=.05

n=10

 

FV=PV(1+i)^n 

500,000 =  PV (1.05)^10          PV= $306,956.63    

ElectricPavlov  Apr 18, 2018
 #2
avatar+2595 
+1

Wow, thanks so much, EP! smileysmiley

tertre  Apr 18, 2018

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