Find the present value What present value amount do you need to deposit in a bank...
Find the present value
What present value amount do you need to deposit in a bank account with 2.00% annual interest rate to have $100,000.00 at the end of 20 years?
Homework Answers
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
100,000=P*(1.02)^20
P=100,000/(1.02)^20
=$67297.13(Approx).
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Find the present value
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deposit today tomake that happen? You can use the following
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