How much money do you need to put in a bank if you want to reach $500,000 in 25 years and the rate is 5% that is compounded annually , round to the dollar

Question

Hint: 500,000/(1+r)-1/r

Answer 1

This appears to be a one-time only deposit.  The equation, because of the compounding of interest only being annually, is:

 

500,000

___________

(1 + 0.05)²⁵

 

Which is:   (500000)/(3.386354940899), which is:  $147,651