Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance (https://www.askmehelpdesk.com/forumdisplay.php?f=125)
-   -   Calculate present value (https://www.askmehelpdesk.com/showthread.php?t=182239)

  • Feb 9, 2008, 05:01 PM
    dblac018
    Calculate present value
    I need $50000 in 12 years. If I earn .25% per month how much do I deposit today?
  • Feb 9, 2008, 05:58 PM
    PolluxCastor
    Let's see if we can derive this formula.

    The new month's balance would be . The next month would do the same, giving a series of

    This reduces to

    Now you can solve for and substitute in the values for the original problem (being careful to treat months and percent properly).

  • All times are GMT -7. The time now is 07:26 AM.