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?

1 answer

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)