Question
In: Economics
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
Solutions
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 agoRelated Solutions
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