How much would an investor have to set aside today in order to have $25,000 ten...

How much would an investor have to set aside today in order to have $25,000 ten years from now if the current rate is 12%?

Expert Solution

	Amount set aside	FV×(1÷(1+r)^n)

	Here,

A	rate per annum	12.00%
B	Number of years	10
C	Number of compoundings per per annum	1
A÷C	rate per period ( r)	12.00%
B×C	Number of periods (n)	10
	Future value (FV)	25,000

	Amount set aside	8,049.33
		25000×(1÷(1+12%)^10)

jeff jeffy answered 1 year ago

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