Question

Matt Bennett wishes to have $ 110 comma 000 in six years. If he can earn annual interest of 8​%, how much must he invest​ today?

Answer 1

he invest​ today is $229166.67

Step-by-step explanation:

given data

future value = $110,000

time t = 6 year

rate r = 8 % = 0.08

to find out

present value

solution

we get here present value that is

future amount = principal × rate × time .................1

$110,000 = principal × 8% × 6

$110,000 = principal × 0.08 × 6

$110,000 = principal × 0.48

principal =
`(110000)/(0.48)`

principal = 229166.67

so he invest​ today is $229166.67