document.write( "Question 1144048: 4. Using the present value formula find how much you should invest now at 5.9% interest, compounded annually in order to have $10,000, 25 years from now.
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Algebra.Com's Answer #765024 by Theo(13342) $\"\"$ $\"About$

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you want $10,000 twenty five years from now.
\n" ); document.write( "the general formula is f = p * (1 + r) ^ n
\n" ); document.write( "f is the future value
\n" ); document.write( "p is the present value
\n" ); document.write( "r is the interest rate per time period
\n" ); document.write( "n is the number of time periods.\r
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\n" ); document.write( "\n" ); document.write( "your time periods are in year.
\n" ); document.write( "the formula uses the rate, not the percent.
\n" ); document.write( "your interest rate per year is 5.9% / 100 = .059
\n" ); document.write( "your number of years is 25.
\n" ); document.write( "your future value is 10,000\r
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\n" ); document.write( "\n" ); document.write( "the formula becomes 10,000 = p * (1 + .059) ^ 25
\n" ); document.write( "solve for p to get p = 10,000 / (1 + .059) ^ 25
\n" ); document.write( "solve for p to get p = 2,385.618518\r
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\n" ); document.write( "\n" ); document.write( "that's your solution.
\n" ); document.write( "you would invest 2,385.618518 now in order to have $10,000 twenty five years from now at 5.9% interest rate per year compounded annually. \n" ); document.write( "

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