Question

If you wish to have $60,000 in 8 years, how much do you need to deposit in the bank today if the account pays 9% using present value and future value.

Answer 1

Answer:

Amount to deposit= $26799.0

Step-by-step explanation:

Amount A = $60,000

Years t = 8 years,

Rate R = 9% .

A= p(1+r/n)^(nt)

60000= p(1+0.09/9)^(9*9)

60000= p(1+0.01)^(81)

60000= p(1.01)^81

60000= p(2.23888)

60000/2.23888= p

26799.1138= p

P= $26799.0

Amount to deposit= $26799.0