if you want to have 160384 in 9 years how much money should you put in...

if you want to have 160384 in 9 years how much money should you put in a savings account today? assume that the savings account pays you 5.2% and is compounded annually.

Expert Solution


We have to calculate in this Present value of $ 160,384
with effective interest rate of 5.2% compounded annully

So first we can calculatet the present value of $ 1 today @ 5.2% in 9 Years

Year	PVF @ 5.2%
1	0.95057
2	0.90358
3	0.85892
4	0.81646
5	0.77611
6	0.73774
7	0.70128
8	0.66661
9	0.63366	Not Rounded


Amount required in 9 years @ 5.2% =		1,60,384.000
Multiply with PVF in 9th year =		0.63366
Present value =		1,01,629.40	(Rounded to 2 decimal)

Answer = Amount put in saving account Today = $ 101,629.40

jeff jeffy answered 3 years ago

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