How much would you have to invest today to receive a. $15,000 in 8 years at 10 percent?

Short Answer

Expert verified

An investor has to invest $6,997.61 today in order to receive $15,000 in 8 years.

Step by step solution

01

Identification of the required information

Future value (FV) = $15,000

Period (n) = 8 year

Interest Rate (i) = 10%

02

Present value (PV)

PV=FV×1+i-n=$15,000×1+10%-8=$6,997.61

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