If Jim wants $25,000 in five years and can earn an 8% interest rate, how much does he need to invest today?
A) $16,108
B) $17,025
C) $15,158
D) $17,829

Question

Quizplus · Accepted Answer

Jim needs to invest $17,025 today at an 8% interest rate to have $25,000 in five years. This is calculated using the formula for present value: PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the number of years.

If Jim Wants $25,000 in Five Years and Can Earn