Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Experience the convenience of getting reliable answers to your questions from a vast network of knowledgeable experts. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.
Sagot :
The amount needed to deposit is $658.16. The present value of cash inflows and outflows over time is called net present value.
What is a Present Value?
The Present value is the current value of a future sum of money that has been discounted by a rate of return is called the present value. It informs you of the amount you'd have to put in today to earn a particular sum tomorrow. The difference between the present value of cash inflows and outflows over time is called net present value.
Given;
Future Value = $800
interest = 5%
Time = 4 years
Calculation of Present Value = Future Value divides by (1+interest)ⁿ
= 800/ (1+0.05)⁴
= $658.16
Thus, The Present value is the current value of a future sum of money $658.16 is needed to save to get $800 at the end of 4 years at the rate of 5%.
Learn more about Present Value here:
https://brainly.com/question/17322936
#SPJ1
Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.
