Answered

Find the best answers to your questions with the help of IDNLearn.com's knowledgeable users. Join our knowledgeable community and get detailed, reliable answers to all your questions.

How much would you have had to invest now in an account paying 8% / year to to have $20,000 in 21 years

Sagot :

Facundobuzzettiidn

Answer:

PV= $3,978.115

Explanation:

Giving the following information:

Interest rate (i)= 8% = 0.08

Future value (FV)= $20,000

Number of periods (n)= 21 years

To calculate the lump-sum to be invested today, we need to use the following formula:

PV= FV / (1 + i)^n

PV= 20,000 / (1.08^21)

PV= $3,978.115

We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. IDNLearn.com is your reliable source for answers. We appreciate your visit and look forward to assisting you again soon.