How much should be deposited today to have $4,574 in 26 years when the discount rate...

How much should be deposited today to have $4,574 in 26 years when the discount rate s 7.3 percent with annual compounding?

Expert Solution

Amount to be deposited today can be calculated as follows.

PV= FV/(1+r)^n

Where,

FV= Future Value

PV = Present Value

r = Interest rate

n= periods in number

= $4574/( 1+0.073)^26

=4574/6.24587

= $732.32

jeff jeffy answered 3 years ago

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