If Delores wanted to make sure that she had $3,000 a year from now, how much would she need to save now if the interest rate is 7 percent?

Question

Quizplus · Accepted Answer

The correct answer is B.To calculate the amount of money Delores needs to save now, we can use the formula:Present Value = Future Value / (1 + interest rate)^number of yearsIn this case, the future value is $3,000, the interest rate is 7%, and the number of years is 1.Plugging these values into the formula, we get:Present Value = $3,000 / (1 + 0.07)^1Present Value = $3,000 / 1.07Present Value = $2,804.60Therefore, Delores would need to save $2,804.60 now in order to have $3,000 a year from now.

If Delores Wanted to Make Sure That She Had $3,000