Calculating investment amount...

Hi all,

New to this forum so please take it easy on me!

Im looking for a formula that calculates an investment amount when I know profit (excl original investment), required return and the investment period.

I'm sure its quite simple but cant seem to find one that works!

Thanks

Nails

Thanks shg - much appreciated!!

Ok - have another layer of detail I need to add.

I need to invest a known $ amount in period 2. Therefore, the "balancing" investment amount is invested at T0.

Any ideas on a suitable formula?

Ok

Does this make it any clearer?

Profit 10,000
No. periods 5
Return 10%
Investment (known amount) 5,000
Investment (known amount) period paid 2
Investment - Flexible (balancing amount) ??
Investment - Flexible period paid 0

Trying to calculate an amount an investor can pay to buy a shareholding in a company given they need to make a certain level of return.

The investors profit at the end of the period is say $10k
The investment horizon is 5 years.
The investors required return is 10%.
The investor has to contribute a known fixed amount of (say $5k) in year 2.
Im looking to know how much the investor will need to pay now to give him the projected return in 5 years whilst also allowing for the fact they will also need to invest $5k in year 2.

Thanks!