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3 years ago

15

You want to have $400,000 to purchase a house 10 years from today. Assuming you can earn 3 percent, compounded annually, how muc

h money must you invest today

1 answer:

AfilCa [17]3 years ago

6 0

Answer:

$297,638

Explanation:

Future Value (FV) = 400,000 (The amount you need to have in 10 years)

n = 10 years

i/r = 3%/year

Present Value (PV) - Money you need to invest today:

= 400,000 / (1+0.03)^10 = $297,638

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Korvikt [17]

Answer:

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