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avatar+3994 

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.

 Apr 18, 2018
 #1
avatar+17255 
+1

FV=500000

PV= ?

i=.05

n=10

 

FV=PV(1+i)^n 

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

 Apr 18, 2018
 #2
avatar+3994 
+1

Wow, thanks so much, EP! smileysmiley

tertre  Apr 18, 2018

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