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Find the lump sum that must be deposited today to have a future value of $32,000 in 5 years if funds earn 8% compounded annually

Find the lump sum that must be deposited today to have a future value of $32,000 in 5 years if funds earn 8% compounded annually
asked 43.3k views
4 votes
Find the lump sum that must be deposited today to have a future value of $32,000 in 5 years if funds earn 8% compounded annually

asked
User Andrei Margeloiu
by
8.2k points

1 Answer

3 votes
32000=p(1+0.08)^5
Solve for p
P=32000/(1.08)^5
P=32,000÷(1.08)^(5)
P=21,778.67
answered
User Krystie
by
8.9k points
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