Homework Answers
Using Time Value of Money (TVM) function
PV = FV / (1 + r)^n
where, PV - Present Value today, FV - Future Value = $1,000, r - interest rate = 8%, n - no. of years = 5
=> PV = 1,000 / (1 + 8%)^5 = $680.58 should be deposited on Jan 1, 2008.
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