Personal Financial Planning 13th Edition by Lawrence Gitman,Michael Joehnk,Randy Billingsley

Exercise 6

Steve Short wants to set up a fund to pay for his daughter's education. In order to pay her expenses, he will need $23,000 in four years, $24,300 in five years, $26,000 in six years, and $28,000 in seven years. If he can put money into a fund that pays 4 percent interest, what lump-sum payment must he place in the fund today to meet his college funding goals