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Tuesday, 26 September 2017

You will require $660 in 4 years. If you earn 3% interest on your funds, how much will you need to invest today in order to reach your savings goal?

You will require $660 in 4 years. If you earn 3% interest on your funds, how much will you need to invest today in order to reach your savings goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.)


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Some values below may show as rounded for display purposes, though unrounded numbers should be used for actual calculations.

PV = FV / (1 + r)t
  = $660 / 1.034
  = $586.40

Calculator computations:

Enter
4
3


–660
 

N


I/Y


PV


PMT


FV

Solve for


586.40



Thank you!

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