Question

Find the lump sum that must be deposited today to have a future value of $24,000 in 6 years if funds earn 8% compounded quarterly. A. $14,921.28

B. $15,651.36
C. $18,652.30
D. $28,651.12

Answer 1

A

Explanation:

24,000 = P(1 + 0.08/4)^24

P = 24,000 / (1.02)^24

= 14,921.28