Answer:
$387,336.64 1
Step-by-step explanation:
The computation of the amount invested now is shown below:
Here we use the present value formula i.e. to be shown in the spreadsheet
Given that,
Future value = $0
Rate of interest = 6% ÷ 12 months = 0.5%
NPER = 20 years × 12 months = 240 months
PMT = $2,775
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the present value is $387,336.64 1
