[1,128.95] Your goal is to have 2,000 in 6 years. The rate of interest is 10% compounded annually, so how much

For Competitive Exams

Your goal is to have $2,000 in 6 years. The rate of interest is 10% compounded annually, so how much should you start with?

$800

$1,026.32

$1,116.79

$1,128.95

Explanation:
Use the formula:PV=$\dfrac{FV}{(1+r)^n}$
substitute FV=2,000 ,r=10% =0.10 and n=6
PV=$\dfrac{2,000}{(1+0.10)^6}$
=$\dfrac{2000}{(1.10)^6}$
=$\dfrac{2000}{1.771561}$
=$1,128.947
so you should start with 1,128.95

Additional Questions

Your goal is to have $3,500 in 10 years. The rate of interest is 3% compounded annually, so how much should you start with?	Answer
The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:	Answer
Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?	Answer
What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?	Answer
The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period in years is:	Answer
Find the compound amount and compound interest on the principal Rs.20,000 borrowed at 6% compounded annually for 3 years.	Answer
Find the compound amount which would be obtained from the interest of Rs.2000 at 6% compounded quarterly for 5 years.	Answer
If the present value of my investment is $1,000 and the rate of interest is 6% compounded annually, what will the value be after 10 years?	Answer
If the present value of my investment is $9,000 and the rate of interest is 3½% compounded annually, what will the value be after 4 years?	Answer
Your goal is to have $2,000 in 6 years. The rate of interest is 10% compounded annually, so how much should you start with?	Answer

Share with Friends