Answered

If you wish to have $60,000 in 8 years, how much do you need to deposit in the bank today if the account pays an interest rate of 9%

Answer :

facundobuzzetti

Answer:

PV= $30,111.98

Explanation:

Giving the following information:

Future value= $60,000

Number of periods= 8

Interest rate= 9%

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

FV= PV*(1+i)^n

Isolating PV:

PV= FV/(1+i)^n

PV= 60,000 / 1.09^8

PV= 30,111.98

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