A company needs to have $200,000 in 4 years,and will create a fund to insure that the $200,000
will be available.If they can earn a 7% return,how much must the company invest in the fund today
to equal the $200,000 at the end of 4 years?

Question

Quizplus · Accepted Answer

Present Value = Future Value * Interest Factor
Present Value = $200,000 * 0.7629 = $152,580
0.7629 is the interest factor on the Present Value table; n = 4; i = 7%

A Company Needs to Have $200,000 in 4 Years,and Will