Question

The kellys are planning for a retirement home. they estimate they will need $180,000 4 years from now to purchase this home. assuming an interest rate of 9%, what amount must be deposited at the end of each of the 4 years to fund the home price? tvm calculator

Answer 1

You need to calculate the present value. Present value = future value (1+r)^-n; 180,000(1.09)^-4 = 127,516.538; 127516.538/4 = 31879.13