1/(1+r)n dismantling/interest calculation

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May 25, 2019 at 9:47 pm #517345
zachmorris
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I’ve come across this illustration in my Kaplan study text.

4m x 1/1.05 20* = 1,507,558.

I haven’t got the slightest clue how to key that formula into a calculator.

Can you break it down for me?
May 28, 2019 at 2:08 pm #517658
P2-D2
Keymaster
- Topics: 4
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You are best to do the 1.05 to the power of 20, using the ^ button on your calculator of x to the power y.

Do 1 divided by your answer and then multiply this answer by 4m.

Hope that clears it up.

Thanks
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