I need to get 400,000 (i wish) what would i have to deposit? if i was to get 6% compounded annually for 25 years what is the formula i would have to use? thanks in advance

Question

anonymous · Answer

example in book is making no sence to me at all

anonymous · Answer

my mr jim ge sir helpful

jim_thompson5910 · Answer

A = P(1+r/n)^(n*t)

400000 = P(1+0.06/1)^(1*25)

400000 = P(1+0.06)^(25)

400000 = P(1.06)^(25)

400000 = P(4.2918707)

I'll let you finish up

anonymous · Answer

its the principle that for some reason i am confused on

jim_thompson5910 · Answer

you would divide both sides by 4.2918707

jim_thompson5910 · Answer

to solve 400000 = P(4.2918707) for P

anonymous · Answer

ty will try that

jim_thompson5910 · Answer

yw