Question

I need to know how to figure out the following: How much to invest now at 6.25% compounded daily to have $100,000 in 17 years.

Answer 1

do you know the formula for future value?

Answer 2

no

Answer 3

\[A=P(1+\frac{r}{n})^{nt}\]
\[100000=P(1+\frac{.0625}{365})^{365 \times 17}\]
\[100000=P(1.00017123)^{6205}\]
\[100000=P(2.893)\]
\[P=$34,562.84\]

Answer 4

thank you very much :)