Question

How much must you invest now in a savings account that earns 11.5% per year if you would like to have $2500 in 7 years?

Answer 1

$1,166.85

Step-by-step explanation:

We use the PV function that is presented in the attachment. Kindly find the attachment below:

Mentioned that

Future value = $2,500

Time period or NPER = $2,500

Rate of interest = 11.5%

PMT = $0

Now the formula which is used is shown below:

= -PV(Rate;NPER;PMT;FV;type)

After solving this, the answer is $1,166.85