You want to have $10,000 saved ten years from now. How much less do you have to deposit today to reach this goal if you can earn 6% rather than 5% on your savings?
A) $555.18
B) $609.81
C) $615.48
D) $928.73
E) $1,046.22

Question

Quizplus · Accepted Answer

The present value of $10,000 at 5% interest rate for 10 years is $6,139.13, and at 6% interest rate is $5,583.95. The difference is $555.18.

You Want to Have $10,000 Saved Ten Years from Now