Question

Jake invested his whole life savings today in an investment that pays 6% interest, compounded annually. In ten years, this investment will be worth $531,402. What is Jake's life savings today?

Answer 1

$ 296 732 .10

Explanation:

FV = PV ( 1 + i)^n FV = future value = 531402 PV = ?

i = decimal interest per period = .06

n = periods = 10

531 402 = PV ( 1.06)^10 Solve for PV = 296 732 .10