Which formula?

[Doug Kanter]

Sorry to ask such a basic question, but I'm having a brain-dead Monday and I
can't remember the name of the formula for this simple problem:

I want to give someone an amount of money which will grow to, say, $100.00
in 10 years. I'd want to make a chart showing a list of hypothetical
investment returns, alongside the amount I'd have to give as "seed money".
The formula would compute the necessary beginning amount of money.

Which formula?

Thanks!
-Doug

 

[Kevin Stecyk]

Doug,

Look at the PV (present value) function.

=PV(0.1,10,0,100000)

This says, 10%, 10 years, 0 payment, and 100,000 in 10 years time.

PV today is approx $38.5K.

Regards,
Kevin

 

[Doug Kanter]

Thanks, Kevin. You just won 12 virtual beers. Place your mug on your
CD-Drawer and hit ALT-P, the shortcut combo for "Pour".