Question

Suppose you want to have $0.5 million saved by the time you reach the age of 30 years and suppose that you are 20 years old now. If you can earn 5% on your funds, how much would you have to invest today to reach your goal?

Answer 1

$306,956,6268

Explanation:

Future value, FV = Present value PV [1 + rate]^t

PV = FV/[1 + rate]^t

PV = 500,000/[1.05]^10

PV = $306,956,6268