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

#1**+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