Narrative 11-1
Solve the following problems using either Tables 11-1 or 11-2 from your text. When necessary, create new table factors. (Round new table factors to five decimal places, round dollars to the nearest cent and percents to the nearest hundredth of a percent)
-Suppose you wish to have $15,000 in 19 years. Use the present value formula to find how much you should invest now at 9% interest, compounded annually in order to have $15,000, 19 years from now.
A) $2,917.35
B) $1,350.00
C) $12,082.65
D) $9,165.30

Question

Quizplus · Accepted Answer

To find the present value (PV) that should be invested now to have $15,000 in 19 years at 9% interest compounded annually, use the formula PV = FV / (1 + r)^n, where FV is the future value ($15,000), r is the annual interest rate (0.09), and n is the number of years (19). Plugging in the values, PV = $15,000 / (1 + 0.09)^19, which calculates to approximately $2,917.35.

Narrative 11-1 Solve the Following Problems Using Either Tables 11-1 or 11-2