How do I reverse the compound interest formula? - reverse compound interest formula
The question is:
Here you will find the current value and the interest on an investment that will be $ 5000 in 3 years. The interest rate is 4% / a compounded annually.
I know n that the compound interest formula p = (1 + i) ^, but how do I find the amount of capital?
Tuesday, February 16, 2010
Reverse Compound Interest Formula How Do I Reverse The Compound Interest Formula?
1 comment:
A = P (1 + i) ^ n
A / (1 + i) ^ n = P
then P = 5000 / (1.04) ³ ≈ $ 4444.98
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