General Accounting A student wants to have $15,000 saved for graduate school in 4 years. Ifthey can earn 6% annual interest, compounded quarterly, how muchshould they deposit today?

PV=FV/(1+r/n)ntwhere:PV = present value (amount to deposit today)FV=15,000 (future value)r=6%=0.06…

Answered: A student wants to have $15,000 saved…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

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A student wants to have $15,000 saved for graduate school in 4 years. If they can earn 6% annual interest, compounded quarterly, how much should they deposit today?