How much would you have to deposit today in a bank account paying 8 percent annual interest to allow you to withdraw $200, 5 years from now?

Name: How much would you have to deposit today in a bank account paying 8 percent annual interest to allow you to withdraw $200, 5 years from now?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To find the present value, use the formula: PV = FV / (1 + r)^n. Here, FV = $200, r = 0.08, n = 5. PV = 200 / (1.08)^5 = $136.12.

How Much Would You Have to Deposit Today in a Bank