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?

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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) About Me  (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.