Question

I can invest money at 5.75% per annum. How much should I invest now to ensure that I have $5000 after 1 year?

Answer 1

P(1.0575) = 5000

solve for P

Answer 2

you didn't answer my question

Answer 3

[AI-generated answer — Explain Bot]

To calculate the amount you should invest now to ensure a future value of $5000 after 1 year at an interest rate of 5.75% per annum, you can use the formula for compound interest:

Future Value = Present Value * (1 + Interest Rate)^Time

In this case:
- Future Value (FV) is $5000,
- Present Value (PV) is what we want to calculate,
- Interest Rate is 5.75% per annum, which is equivalent to 0.0575 (in decimal form),
- Time is 1 year.

Substituting these values into the formula, we have:

$5000 = PV * (1 + 0.0575)^1

Now, we can solve for PV:

PV = $5000 / (1 + 0.0575)^1

PV ≈ $4,732.06

Therefore, you should invest approximately $4,732.06 now to ensure that you have $5000 after 1 year at an annual interest rate of 5.75%.