Your company needs to have $40,465.00 five years from now. If the interest rate at your bank is 6% compounded quarterly, how much will you need to deposit into your account today in order to have the desired amount in 5 years?
a. $29,999.26
b. $29,666.92
c. $30,044.05
d. $30,000.00
e. $20,044.05
Your company needs to have $40,465.00 five years from now. If the interest rate at your bank is 6% compounded quarterly, how much will you need to deposit into your account today in order to have the desired amount in 5 years?
a. $29,999.26
b. $29,666.92
c. $30,044.05
d. $30,000.00
e. $20,044.05
The answer is "c"-$30,044.05. You use exactly the same PV formula as in the previous example.
