Question
If an account has a 3.4% interest rate compounded monthly, how much money do you need to invest now to have $10,460 in 10 years?
Answers
Steve
Just plug in your good old formula:
A = P(1+r/n)^(nt)
10460 = P(1 + .034/12)^(12*10)
10460 = P(1.0028333)^120
10460 = 1.40427P
P = 7448.71
A = P(1+r/n)^(nt)
10460 = P(1 + .034/12)^(12*10)
10460 = P(1.0028333)^120
10460 = 1.40427P
P = 7448.71