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Jennifer Davis anticipates needing $660,000 to start a business. If she can earn 5.9 percent compounded...

Jennifer Davis anticipates needing $660,000 to start a business. If she can earn 5.9 percent compounded annually on her investments, how much money would Jennifer have to invest today to have $660,000 in 3 years? (Do not round intermediate calculations and round your final answer to the nearest penny.)

Amount to be invested today =

Solutions

Expert Solution

Value required in 3 years = $660,000

Interest rate = 5.9%

Calculating Present value,

Investment required = 660,000/(1 + 0.059)³

Investment required = $555,720.04

jeff jeffy answered 2 years ago
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