--- In AsburyPark@yahoogroups.com, "justifiedright"
<[EMAIL PROTECTED]> wrote:
>
> So if I put 8.3 million in a safe investment vehicle with 5%
> compounded annually, how much would I have at the end of 10 years?
>
$ amount X (1 + i)^n
i = rate of interest
n = compounding periods
Let's you find the compound interest factor
The answer using your numbers
$8.3M X (1 +5%)^10
$8.3M X 1.628895
$13.519825M
Go in reverse. What is the present value of $13.519825 to be received
in 10 years assuming a 5% interest rate.
Present value factor is reciprocal 1/(1+i)^n
$13.519825M X 1/(1+5%)^10
$13.519825M X .613913 = $8.3M
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