Answer:
The amount that would be placed in an account now that would result in $18000 in three years is $14,991.43 at 6.1% annual interest when compounded weekly
Explanation:
The formula of present value can be used in determining the amount to be invested now to reach $18000 in 3 years
PV=FV*(1+r/t)^-Nt
FV is the future amount of $18000
r is the rate on the investment at 6.1% per year
N is the number of years at 3
t is the number of period in a year when interest is compounded , that is 52 weeks
PV=18000*(1+6.1%/52)^-3*52
PV=18000*(1+0.001173077 )^-156
PV=18000*(1.001173077)^-156
PV=$14,991.43
