Margaret Moore anticipates needing $460,000 to start a business. If she can earn 7.5 percent compounded...

Margaret Moore anticipates needing $460,000 to start a business. If she can earn 7.5 percent compounded annually on her investments, how much money would Margaret have to invest today to have $460,000 in 3 years? (Round answer to 0 decimal places, e.g. 5,713.)

Expert Solution

$460,000 = PV * (1 + 7.5%)³

$460,000 = PV * 1.242297

PV = $370,282

jeff jeffy answered 2 years ago

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