The amount you must deposit now in your savings account paying 5% interest, in order to accumulate $18,000 for your first tuition payment when you start law school in 3 years is

Question

Quizplus · Accepted Answer

The correct answer is C. $15,549.12.To calculate the amount you need to deposit now, you can use the formula:P = F / (1 + r)^nwhere:P is the present value (the amount you need to deposit now)F is the future value (the amount you want to accumulate, $18,000)r is the annual interest rate (5%)n is the number of years (3)Plugging in the values, we get:P = 18000 / (1 + 0.05)^3P = 18000 / 1.157625P = $15,549.12Therefore, you need to deposit $15,549.12 now in order to accumulate $18,000 in 3 years at 5% interest.

The Amount You Must Deposit Now in Your Savings Account