You need $81,000 in 11 years. If you can earn .48 percent per month, how much wi

Question

You need $81,000 in 11 years.    
   

If you can earn .48 percent per month, how much will you have to deposit today? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

If you can earn .48 percent per month, how much will you have to deposit today? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

11 years = 132 months

Let amount deposited now be P.

So P*(1.0048^132) = 81000, which means P=43,050.12

Hope this helped ! Let me know in case of any queries.

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