What Single Deposit Could You Make Today to Have $1,000,000 in 30 Years?

The Power of Compound Interest: Achieving $1,000,000 in 30 Years with an 11% Annual Return

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Question

What single deposit could you make today in order to have $1,000,000 in 30 years, assuming it earns interest at 11% per year, compounded monthly?

Answers

Explanations

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A. B. C. D. E.

Explanation

On the BAII Plus, press 360 N, 11 divide 12 = I/Y, 0 PMT, 1000000 FV, CPT PV. On the HP12C, press 360 n, 11 ENTER 12 divide i, 0 PMT, 1000000 FV, PV.

Note that the answer is displayed as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.

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