MC algo 4-17 Calculating Present Values You want to have $86,000 in 18 years to help...

Question

Question

MC algo 4-17 Calculating Present Values You want to have $86,000 in 18 years to help your child attend college. If you can ea

Answer 1

Answer #1

The present value is computed by using the below mentioned formula:

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

= $ 86,000 / ( 1 + 0.042 )¹⁸

= $ 41,009.03 Approximately

Feel free to ask in case of any query relating to this question

Answer 2

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