Business, 03.10.2019 05:00 jam3381

Brenda young desires to have $15,000 eight years from now for her daughter's college fund. if she will earn 6 percent (compounded annually) on her money, what amount should she deposit now? use the present value of a single amount calculation.

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Answer from: mem8163

Present value PV= FV(1/(1+r)^n)

PV = Present Value

FV = Future Value

r= rate

n= number of years

Just plug in the numbers and calculate.

Answer from: theoretical0315

The answer is: $9,411.19 (rounded to 2 decimal places)

Explanation:

Brenda needs to discount the present value of future anticipated cash flows to determine the value that she should deposit in the current period.

The time value of money principle dictates that the value of money today is worth more than its future equivalent in terms of the purchasing power. It is for this reason that interest is charged in future after lending or borrowing money in the current period. In order to compute the present value of the money, the compound interest formula needed is as follows:

FV = PV (1 + r)^nt where FV is the future value and PV is the present value, n is the number of times interest is applied per period, r is the interest rate and t is the number of time periods. In order to calculate present value, it has to be the subject of the formula:

PV = FV/ (1 + r)^nt

= $15, 000/(1 + 0.06)^(1*8)

= $15, 000/1.5938481

= $9, 411.18557

Answer from: Quest

Some disadvantages to leasing a car is that you are counting on someone to give you money every week or month depending on what you decided and if they don't have all of it well what if you needed that money now you as well have to pay not in full. a disadvantages to purchasing a new vehicle is if it is used then not all the time will absolutely everything work. its almost like a trail and era. although if it is a new car they will try to though all these specials and deals at you in your lease and it can be very overwhelming if you are not use to it.

Answer from: Quest

those r all of them i believe

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