Marshall has received an inheritance and wants to invest a sum of money today that will yield $4,300 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today

$2,639.83  

Explanation:

The value expected in the next 10 years is known as the future value while the amount to be invested today is the present value amount, hence, using the formula below which relates the present value to the future value, we can determine the present value as appropriate:

PV=FV/(1+r)^n

PV=present value=the unknown

FV=future value=$4,300

r=rate of return=5%

n=number of years that investment would last =10

PV=$4,300/(1+5%)^10

PV=$4,300/1.05^10

PV=$4,300/1.62889463

PV=$2,639.83  

answer; depth;

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!