Lori wants to give her daughter $35,000 in 9 years to start her own business. How...

Lori wants to give her daughter $35,000 in 9 years to start her own business. How much should Lori invest today, at an annual interest rate of 5%, compounded annually, to have $35,000 in 9 years.

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Expert Solution

	Investment today	FV×(1÷(1+r)^n)

	Here,

A	rate per annum	5.00%
B	Number of years	9
C	Number of compoundings per per annum	1
A÷C	rate per period ( r)	5.00%
B×C	Number of periods (n)	9
	Future value (FV)	35,000

	Investment today	$ 22,561.31
		35000×(1÷(1+5%)^9)

jeff jeffy answered 1 year ago

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