Question

Your bank will pay you an interest rate of .092 percent compounded weekly. You want to have $21,500 in 9 years. How much will you have to deposit today

Answer 1

$13,980.88

Step-by-step explanation:

For computing the deposit today we need to apply the present value formula i.e to be shown in the attachment below:

Given that,

Future value = $21,500

Rate of interest = 0.092%

NPER = 9 years × 52 weeks = 468 weeks

PMT = 0

The formula is shown below:

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

So, after applying the above formula, the amount of deposit for today is $13,980.88