Question

You need to have $20,000 for a down payment on a house 4 in years. If you can earn an annual interest rate of 3.8 percent, how much will you have to deposit today

Answer 1

PV= $17,228.23

Step-by-step explanation:

Giving the following information:

FV= $20,000.

The number of years= 4.

interest rate= 3.8%.

To calculate the initial investment required to reach the objective, we need to use the following formula:

PV= FV/(1+i)^n

PV= 20,000/(1.038^4)

PV= $17,228.23