You want to have $13,000 in 9 years for a dream vacation. If you can earn an interest rate of .4 percent per month, how much wil

Question

3 years ago

8

l you have to deposit today?

1 answer:

alexdok [17] · Answer 1 · 2022-08-31T09:21:17+03:00

Answer:

PV= $8,447

Explanation:

Giving the following information:

Future value= $13,000

Number of months= 9*12= 108

Interest rate= 0.4/100= 0.004 compounded montlhy

To calculate the initial investment required, we need to use the following formula:

PV= FV/(1+i)^n

PV= 13,000/(1.004^108)

PV= $8,447