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    yeeyee's Avatar
    yeeyee Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Aug 15, 2009, 04:48 AM
    Time Value of Money
    What is the formula for calculating the following problem?
    Take for instance I recently made an investment of X amount of dollars and I'm expecting
    X% annual rate of return on my investment and let's say I decide to sell this investment in 6 yrs. I just want to know the correct method of determining how much to sell it for. Can you help?
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
    		  
    #2

    Aug 15, 2009, 05:46 AM
    To realize an annual return of r , on an initial investment of I, after n years, sell it for



    Be sure to express r as a decimal in that formula.
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