You want to have $85,000 in 17 years to help your child attend college. If you...

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You want to have $85,000 in 17 years to help your child attend college. If you...

You want to have $85,000 in 17 years to help your child attend college. If you can earn an annual interest rate of 4.1 percent, how much will you have to deposit today?

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Answer 1

Answer #1

Present value = Future value / (1 + r)ⁿ

Present value = 85,000 / (1 + 0.041)¹⁷

Present value = 85,000 / 1.979987

Present value = $42,929.57

You will deposit $42,929.57

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Answer 2

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