SOLUTION: What must be invested today, to be worth $20,000 in 10 years, if it is compounded yearly at 8%?
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Question 887914: What must be invested today, to be worth $20,000 in 10 years, if it is compounded yearly at 8%?
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
What must be invested today, to be worth $20,000 in 10 years, if it is compounded yearly at 8%?
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Given:
A = $20,000
P = unknown (we're solving for this)
r = 8% = 0.08
n = 1 (compounding the money once per year)
t = 10
Plug these values into the equation below and solve for P
Rounding to two decimal places (to the nearest cent)
You must invest $9,263.87
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