Miner Library inois State University Myllinon State Reggienet Office 383 5% MIND
ID: 2811775 • Letter: M
Question
Miner Library inois State University Myllinon State Reggienet Office 383 5% MINDTAP Ch 05: Assignment- Time Value of Money of the future value interest Also, notice that the present value interest factor is the factor Mackenzie So, do you think that we're ready to do a problem? h Surel Here's one from our homework. You work and 11l work, and we'll see whether our answers Savanna match. Mackenzie OK. Let's get started. Homework Problem Sarah wants to reduce the cost of graduate school by starting a savings plan today. As a sophomore, she has estimated that she has three years to accumulate the $30,000 that she needs to help cover some of her prajected expenses. The account she would open would earn 9% per year compounded annually So how much would she have to deposit today to accumulate $ 30,000 in three years? Or, stated differently, what is the the nearest whole doliar.) value of $30,000? (Note: Round your answer to I think that Sarah would have to deposit at the end of three years. so that she would have the desired S30.00 $23,166 $25,830 $19,112 is that what you got when you solived th Savannah Yes it ist I think we've got a good start on getting ready for Dr. Anderson's next quiz Continue without savingExplanation / Answer
Sarah would have to deposit today
=FV/(1+r)^t
=30000/(1+9%)^3
=23166
the above is answer..