<PRE><B>Question 1169188</B>
formula is f=p*(1+r)^n
f is the future value
p is the present value
r is the interest rate per time period.
n is the number of time periods.


he needs to have 49600 after 9 years, so f = 49600.
interest rate is 1.69% compounded annually, so r = .0169 per year.
n = 9 years
formula becomes:
49600 = p*(1+.0169)^9
divide both sides of the equation by ((1+.0169)^9) to get:
49600/((1+.0169)^9) = 42655.73705.
replace p in the original equation to get:
f = 42655.73705*(1+.0169)^9 = 49600.
this confirms the solution is correct.


your answer is that he will have to invest 42655.74 today so that he will have 49600 in 9 years.


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