You want to have $55,000 in the bank account 9 years from today to pay for...
You want to have $55,000 in the bank account 9 years from today to pay for a car and if you can fund the car by making one payment into your account today, and the bank will pay a yearly interest rate of 3%. Then, how much do you need to put in your account today?
Homework Answers
Present value = Future value/(1+i)^n
i = interest rate per period
n= number of periods
=>
present value = 55000/(1+3%)^9
= 42152.92
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