Question
Planning a wedding in 6 years.
Estimated cost $55,000
How much do you have to deposit today in one lump sum to fully pay for it if you earn 7.5% per year on investment?
Estimated cost $55,000
How much do you have to deposit today in one lump sum to fully pay for it if you earn 7.5% per year on investment?
Answers
Reiny
let the present value of the deposit be P
P(1.075)^6 = 55000
p = 55000/1.075^+ = $35637.88
(elope, skip the expensive wedding, and use it as a downpayment for a house)
P(1.075)^6 = 55000
p = 55000/1.075^+ = $35637.88
(elope, skip the expensive wedding, and use it as a downpayment for a house)