3 ms·
Future value = present value * (1 + interest rate) ^ time FV = PV * (1 + i) ^ t FV and PV are in dollars, i is a percent, and t is number of years. We know F
by MrPowers 8y ago
Future value = present value * (1 + interest rate) ^ time
FV = PV * (1 + i) ^ t
FV and PV are in dollars, i is a percent, and t is number of years.
We know FV, i and t and can solve for PV.
8,200,000 = PV * (1 + 0.07) ^ 70
PV = 8,200,000 / 1.07 ^ 70
So 72,000 compounded over 70 years at an interest rate of 7% has a future value of 8,200,000.