Question #28ff9

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Answer 1 · 2016-03-13T05:08:50

$€50,000$

$1$ . Rearrange the formula in terms of $P$ .

$F=P(1+i)^t$

$P=F/(1+i)^t$

$2$ . Substitute your known values into the formula. Note that the compounding period is one year.

$P=(€88,578.05)/(1+0.1)^6$

$3$ . Solve for $P$ .

$color(green)(|bar(ul(color(white)(a/a)P=€50,000color(white)(a/a)|)))$

$:.$ , €50,000 will have a future value of $€88,578.05$ in $6$ years at $10%$ per annum.