contestada

keisha is managing investments for a non-profit company. they want to invest some money in an account earning 5% interest compounded annually with the goal to have $30,000 in the account in 6 years. how much should keisha deposit into the account?

Respuesta :

ayune

With interest rate 5% compounded annually, Keisha should deposit $22,386.46 in order to reach the goal to have $30,000 within 6 years.

The formula for the future value is:

FV = P (1 + r)ⁿ

Where:

P = present value

r = interest rate per period

n = number of periods

Parameters given in the problem:

FV = $30,000

n = 6

r = 5% = 0.05

Hence,

30,000 = P (1 + 0.05)⁶

P = 30,000 / 1.05⁶ = 22,386.46

Therefore, Keisha needs to deposit $22,386.46

Learn more about future value here:

https://brainly.com/question/25805668

#SPJ4

Ver imagen ayune

Otras preguntas