SOLUTION: If I would like $75,000 in 15 years how much do I need to set aside in an account today,if the account pays an interset of 4.9% compounded semiannually? I am confused on how to us

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Question 195998: If I would like $75,000 in 15 years how much do I need to set aside in an account today,if the account pays an interset of 4.9% compounded semiannually?
I am confused on how to use the correct formula when I do not know what my current value is now?
Answer by jojo14344(1513) About Me  (Show Source):
You can put this solution on YOUR website!


Working Eqn ---> F=P%281%2Bi%2Fm%29%5E%28mn%29
where,


Isolate P:

P=F%281%2Bi%2Fm%29%5E%28-mn%29=75000%281%2B0.049%2F2%29%5E%28-2%2A15%29
P=75000%281.0245%29%5E-30=75000%280.4837724%29
highlight%28red%28P=36282.933%29%29, Answer


Thank you,
Jojo