Question

Asked Dec 8, 2019

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Mr. and Mrs. Davis needs to have $100,000 to start their own catering business in 15 years. They expect to earn 7% annually on their investment. What amount do they need to have today so that they can reach their financial goal of having $100,000 in 15 years?

Step 1

Future value (FV) of the savings should be $100000.

Number of years ( n ) of savings/investment is 15 years

Rate of interest ( r )earned on the same is 7%

Principal amount to be invested can be calculated as below:

Step 2

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