You need $25,000 in four years to start your own business. If you can earn 8% on your funds, how much do you need to invest today in order to reach your goal?

Name: You need $25,000 in four years to start your own business. If you can earn 8% on your funds, how much do you need to invest today in order to reach your goal?
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 = $25,000, r = 0.08, and n = 4. PV = $25,000 / (1.08)^4 = $18,376.

You Need $25,000 in Four Years to Start Your Own