Rodget's is saving for an expansion project and has decided to save $2,500 a month,starting today and continuing for four years.The firm expects to earn 7.9 percent,compounded monthly.If the company had wanted to deposit an equivalent lump sum today,how much would it have had to deposit?

Question

Quizplus · Accepted Answer

PV_ADue = $2,500({1 - 1/[1 + (.079/12)]^{4 × 12}}/(.079/12))× [(1 + (.079/12)] = $103,277.412^nd BGN 2^nd SET

Rodget's Is Saving for an Expansion Project and Has Decided