SOLUTION: Must pay a lump sum of $6000 in 5 years. What amount should be deposited today at 6.2% compounded annually will amount $6000 in 5 years?

SOLUTION: Must pay a lump sum of $6000 in 5 years. What amount should be deposited today at 6.2% compounded annually will amount $6000 in 5 years?

Algebra.Com

Question 281640: Must pay a lump sum of $6000 in 5 years. What amount should be deposited today at 6.2% compounded annually will amount $6000 in 5 years?
Answer by checkley77(12844) (Show Source): You can put this solution on YOUR website!
X(1+.062)^5=6,000
X(1.062)^5=6,000
X*1.250898=6,000
X=6,000/1.230898
X=$4,441.49 IS THE AMOUNT TO INVEST TO MEET THE GOAL OF $6,000 IN 5 YRS.
RELATED QUESTIONS
Find the lump sum deposited today that will yield the same total amount as this yearly... (answered by nyc_function)

Find the lump sum deposited today that will yield the same total amount as payments of... (answered by rfer)

WHat amount must be deposited into a certificate of deposit today so that the investment... (answered by jim_thompson5910)

#15: What lump sum deposited today at 12% compounded quarterly for 15 years will yield... (answered by mathmate,MathTherapy)

What amount of money should be invested today if you want $10,000 in six years assuming... (answered by rfer)

what formulas do i use for these problems: Problem #5 John lee saving account has a... (answered by stanbon)

5. What sum must be deposited today at 18% per year compounded monthly if the goal is to... (answered by CPhill,ikleyn)

What sum must be deposited today at 18% per year compounded monthly if the goal is to a... (answered by ikleyn,htmentor,solver91311)

Can someone please help me with this problem: Find the lump sum deposited today that... (answered by Theo)