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Calculate the Amount put into Saving Account
If you want to have $60,000 in 10 years, the amount that should be put into a 6.0% (effective annual rate) savings account now is most nearly:
Solution: This problem could also be stated: What is the equivalent present worth of $60,000 ten years from now if monthly money is worth 6% per year?
P = F (P/F, I, n) = $60,000(P/F, 6%, 10) = $60,000 * 0.5584 = $33,503.69
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