SOLUTION: How much money would need to be deposited into a compound interest savings account earning 5% each year so that you will accumulate $10,000 in 18 years. I believe the correct form
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Question 720965: How much money would need to be deposited into a compound interest savings account earning 5% each year so that you will accumulate $10,000 in 18 years. I believe the correct formula is PV=FV/(1+r)^n but when I try to plug the numbers into the formula, I am coming up with more than $10,000. I don't know what I am doing wrong and could really use some detailed help. Thanks in advance. Answer by rfer(16322) (Show Source):
You can put this solution on YOUR website! PV=10000/(1.05)^18
PV=10000/2.41
PV=$4149.38
I don't know what you did wrong, but you had the correct formula.
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