Question

In: Finance

You want to have $13,500 in 8 years for a dream vacation. If you can earn...

You want to have $13,500 in 8 years for a dream vacation. If you can earn an interest rate of .5 percent per month, how much will you have to deposit today?

Multiple Choice

  • $8,475.09

  • $12,971.95

  • $8,470.07

  • $8,363.57

  • $8,549.43

Solutions

Expert Solution

Ans $8,363.57

FV = Future Value
PV = Present Value
r = rate of interest
n= no of period
PV = FV/ (1 + r )^n
PV = 13500 / ((1 + 0.5%)^96)
PV = 8363.57

jeff jeffy answered 1 year ago
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