You would like to have $35,000 in 12 years. How much money must you set aside today for this purpose if you can earn 5.35 percent on your investment?
$12,341.88
$45,243.67
$18,726.37
$65,789.45
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Question
You would like to have $35,000 in 12 years. How much money must you set aside today for this purpose if you can earn 5.35 percent on your investment?
$12,341.88
$45,243.67
$18,726.37
$65,789.45
Solution
Ans $18,726.37
FV = Future Value 
PV= PresentValue 
r= rate of interest 
n= no of period 

FV = PV (1 + r )^{n} 
35000 = PV ( 1 + 0.0535)^{12} 
PV = 35000 / (1.0535)^{12} 
PV = 18726.37 $ 
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