Question #28ff9

1 Answer
Mar 13, 2016

Answer:

#€50,000#

Explanation:

#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.