Reply
Sat 7 Jan, 2012 03:57 pm
On your seventieth birthday, you learn that your grandma, bless her soul, deposited $50.00 for you on the
day of your birth in a savings account bearing 5 percent interest. How much is in the account?
I know the formula is PV = FV /(1+r)^n
So I did PV = 50/(1+.05)^70 and I get $1.64.
This number seems a little small - is it right?
@brokencdplayer,
brokencdplayer wrote:
On your seventieth birthday, you learn that your grandma, bless her soul, deposited $50.00 for you on the
day of your birth in a savings account bearing 5 percent interest. How much is in the account?
I know the formula is PV = FV /(1+r)^n
So I did PV = 50/(1+.05)^70 and I get $1.64.
This number seems a little small - is it right?
You know Present value = $5 and you want to know Future Value so you multiply instead of divide.
Stumble It!
Tweet This
Bookmark on Delicious
Share on Facebook
Share on MySpace