To calculate compound interest, we use this formula: FV = PV x (1 +i)^n, where:
<span>FV represents the future value of the investment
PV represents the present value of the investment
i represents the rate of interest earned each period
<span>n represents the number of periods;
So, 75,000 = PV x (1+0.08)^17;
Then, 75,000 = PV x 3.61;
PV = 75,000 </span></span>÷ 3.61;
PV = <span> $</span><span>20,775.62;
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