How much must you invest today


Problem 1: You are scheduled to receive $20,000 in two years. When you receive it, you will invest it for six more years at 8.4% per year. How much will you have in eight years?

Problem 2: You expect to receive $10,000 in two years. You plan on investing it at 11% until you have $75,000. How long will you wait from now?

Problem 3: You're trying to save to buy a new $170,000 Ferrari. If you believe that your mutual fund will achieve a 12% per year rate of return, and you want to buy the car for your birthday in 9 years, how much must you invest today?

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Finance Basics: How much must you invest today
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