Question

Your father invested a lump sum 33 years ago at 4.25 percent interest. Today, he gave you the proceeds of that investment which totaled $51,480.79. How much did your father originally invest?

Answer 1

Answer:

your father originally invest is $13035.72

Explanation:

given data

investment time = 33 years

interest rate = 4.25 percent

totaled $51,480.79

solution

we get present value by future value formula that is

future value = present value × $(1+r)^{t}$    .........................1

put here value and we get

$51480.79 =  present value × $(1+0.0425)^{33}$

solve it we get

present value = $13035.72

so your father originally invest is $13035.72