Answer:
$72,405
Explanation:
PV: Present value (The amount of deposit today)
FV: Future Value
i/r: Interest rate
PMT: The amount of money you have to deposit monthly. In this question, this amount is 0.
FV = $140,000
n = 6 years = 6x12 = 72 months
i/r = 11%/year = 0.92%/month
PMT = 0
PV = ?
By inputting all these given info into financial calculator, we have the following:
PV = $72,405
OR we can perform the calculation manually:
PV = 140,000 / (1+0.0092)^72 = $72,045
