Question 1018050

you saved $25000 to buy a new car in time for graduation in 2020.  in 2010 you invested in a certain amount of your savings in a blue chip stock that yields 5% interest compounded monthly.  find out much money you started with before you saved enough to buy a new car.
Please help.  
Thank you
<pre>Present Value formula: {{{matrix(1,3, P, "=", A/(1 + i/m)^mt)}}}, where:
{{{matrix(1,2, P, "=")}}} Present Value of initial investment (Unknown, in this case)
{{{matrix(1,2, A, "=")}}} Future Value of initial investment ($25,000, in this case)
{{{matrix(1,2, i, "=")}}} Annual Interest rate (5%, or .05, in this case)
{{{matrix(1,2, m, "=")}}} Number of ANNUAL compounding periods (monthly, so 12, in this case)
{{{matrix(1,2, t, "=")}}} Time, in years (10, in this case)
{{{P = A/(1 + i/m)^mt}}} then becomes: {{{highlight_green(matrix(1,5, P, "=", "25,000"/(1 + .05/12)^(12 * 10), "=", highlight("$15,179.03")))}}}