Loadstar Sensors is a company that makes load/force sensors bases on capacitive sensing technology. The company wants accumulate $30 million for plant expansion 5 years from now. If the company already has $15 million in an investment account for the expansion, how much more must the company add to the account now so that it will have the $30 million 5 years from now? The account earns interest at 10% per year.

Question

anonymous · Answer

I just need help setting up the problem. Would it be:

= 15,000,000 (F/P,10%,5)
= 15,000,000(.6209)
= 9,313,500

anonymous · Answer

@jim_thompson5910  @ganeshie8 

Familiar with these type of problems? I've been waiting 40 mins for help :C

ganeshie8 · Answer

compound interest

ganeshie8 · Answer

we need to solve this :-
how much money u need to start wid, if u want it to become $30 million in 5 years, growing at 10% per year

ganeshie8 · Answer

say the money required is P

$\large  30,000,000 = P(1+.1)^5$

ganeshie8 · Answer

solve P first ? can u ?

anonymous · Answer

P = 30,000,000 / (1+.1)^5

ganeshie8 · Answer

yup, simplify

anonymous · Answer

Ahh thanks. I hate these word problems..

ganeshie8 · Answer

who doesnt :)

wat do u get, btw thats not the final answer....

ganeshie8 · Answer

you need to subtract 15million from watever value u get for P

anonymous · Answer

18627639.69

anonymous · Answer

im subtracting because we started off with 15 million right?

ganeshie8 · Answer

Exactly ! 15 million is already there in th ebank
so we just need to add the extra 3milltion+ more

ganeshie8 · Answer

final answer wud be, 

18627639.69 - 15million

anonymous · Answer

Ok great. So u used the formula. P = F [ 1 / (1+I)^n ]

ganeshie8 · Answer

yes

anonymous · Answer

Thanks for the expanation.

anonymous · Answer

explanation*

ganeshie8 · Answer

np, you're wlcme :))