Question

How much must be deposited today into an account in order to save $70000in 8 years with annual compounding and an apr of 7%

Answer 1

See below

Explanation:

FV = pv ( 1 + i)^n i = decimal interest per period (year) = .07

n = periods = 8

FV = future value = 70 000

pv = present value = the maount to deposit

70 000 = pv ( 1 + .07)^8 pv = $ 40740.64