How Much Cash Must Be Deposited In A Savings Account As A Single Amount In Order To Accumulate $300,000 At The End Of 12 Years, Assuming That The Account Will Earn 10% Interest In First 6 Years And 8% Interest In Last 6 Years?

Larry Patterson answered

First off, don't proceed based on this info until it is checked closely. It can only be considered an estimate at best.

If you can get 10% (big if) and if it is compounded monthly, if you invested
$ 91,570, it should increase to $ 300,015 in 12 years ( 144 months).

There are formulas for these calculations but I just based it on some programs I have set up in MS EXCEL.

Daniel Martinez answered

You do know that you CAN goto the bank to get your answer?

Ellie Hoe answered

F.v = P(1+I)^n
Here
F.v = 300,000
P = ?
n = 12
I = 10%

Putting the values in the equation you will get
300000= P(1+.10)^12
300000 = P(3.138428376721)
300000/ 3.1384 = P

P = 95589.2453 >>>answer

How Much Cash Must Be Deposited In A Savings Account As A Single Amount In Order To Accumulate $300,000 At The End Of 12 Years, Assuming That The Account Will Earn 10% Interest In First 6 Years And 8% Interest In Last 6 Years?

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