Answer:
Amount to deposit= $26799.0
Step-by-step explanation:
Amount A = $60,000
Years t = 8 years,
Rate R = 9% .
A= p(1+r/n)^(nt)
60000= p(1+0.09/9)^(9*9)
60000= p(1+0.01)^(81)
60000= p(1.01)^81
60000= p(2.23888)
60000/2.23888= p
26799.1138= p
P= $26799.0
Amount to deposit= $26799.0
To be able to have $60,000 after 8 years at a rate of 9% per annum, the amount to deposit today is $30,111.98
You can solve this using the Future Value formula which is:
Future value = Present value x ( 1 + rate)^ number of years
You have everything except the present value so solve for it:
60,000 = PV x ( 1 + 9%)⁸
60,000 = PV x 1.9925626416901921
PV = 60,000 / 1.9925626416901921
PV = $30,111.98
In conclusion, you should deposit $30,111.98 today.
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