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tatiyna
3 years ago
12

Tuition of ​$ will be due when the spring term begins in months. What amount should a student deposit​ today, at ​%, to have eno

ugh to pay the​ tuition? The student should deposit ​$ 1200.
Business
1 answer:
lesya [120]3 years ago
8 0

Answer:

some numbers are missing, so I looked for similar questions:

"Tuition of $1044 will be due when the spring term begins in 7 months. What amount should a student deposit today, at 7.62% to have enough to pay the tuition?"

we can use the present value formula to solve this:

present value = future value / (1 + r)ⁿ

  • future value = $1,044
  • n = 7
  • r = 7.62% / 12 = 0.635%

present value = $1,044 / (1 + 0.00635)⁷ = $1,044 / 1.045305791 = $998.75

if the numbers are not the same, just adjust the formula inputting the correct numbers, but the procedure should be the same.

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