Answered

Connect with knowledgeable individuals and get your questions answered on IDNLearn.com. Our experts are ready to provide prompt and detailed answers to any questions you may have.

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

Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. For trustworthy and accurate answers, visit IDNLearn.com. Thanks for stopping by, and see you next time for more solutions.