Mike Gioulis would like to have $23,000 in 4 years to pay off a balloon payment on his business mortgage. His money market account is paying 1.825% compounded daily. Disregarding leap years, how much money (in $) must Mike put in his account now to achieve his goal? Round to the nearest whole dollar.

Mike Gioulis would like to have $23,000 in 4 years to pay off a balloon payment on his business mortgage. His money market account is paying 1.825% compounded daily. Disregarding leap years, how much money (in $) must Mike put in his account now to achieve his goal? Round to the nearest whole dollar.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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Mike Gioulis would like to have $23,000 in 4 years to pay off a balloon payment on his business mortgage. His money market account is paying 1.825% compounded daily. Disregarding leap years,
how much money (in $) must Mike put in his account now to achieve his goal? Round to the nearest whole dollar.

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