Question

ASAP Thnk you

Answer 1

Let us assume to deposit $x today for 6 years at the rate of 4.20% after 6 year, we need $106,000 => => $X X (1+0.042) = $106,000 $X = $106,000/(1.042) $X = $82,813.20

To calculate the amount, we need to discount the amount to be received after 6 years which is $106,000 at the interest rate of 4.2%. Hnece, by discounting we get, $82,813.20. Therefore, $82,813.20 is to be deposited today, to receive $106,000 at the end of 6 years.

Hope this solves your query. Feel free to ask any further query in the comment sction.