Approximately how much money do you need today to ensure that you will have $12,000 in 3 years, assuming you can earn 4% on your savings?

Question

Quizplus · Accepted Answer

To find out how much money you need today to ensure you have $12,000 in 3 years at a 4% annual interest rate, you can use the formula for the present value of a single sum, which is PV = FV / (1 + r)^n, where PV is the present value, FV is the future value, r is the annual interest rate, and n is the number of years. Plugging in the values, PV = $12,000 / (1 + 0.04)^3 ≈ $10,668.

Approximately How Much Money Do You Need Today to Ensure