A company wants to make a single deposit now so it will have $95,328 five years...

A company wants to make a single deposit now so it will have $95,328 five years from now. If the account will earn interest of 10% per year, the amount that must be deposited now is nearest to

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Expert Solution

Future value = 95,328 $

Time (N) = 5 Years

Interest rate = 10%

So, Present value = Future value / (1 + R)^n

= 95328 / (1 + 10%)^5

= 95328 / (1.1)^5

= 95328 / 1.61051

= 59,191.19 $

Money to be deposited now is 59,191.19 $

Rahul Sunny answered 2 years ago

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