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FinanceQ&A LibraryOwn tax Teturn? Assume she can earn 3 percent on her savings.8. Calculating the Time Value of Money for Savings Goals. If you desire to have $20,000 for a down payment for a house infive years, what amount would you need to deposit today? Assume that your money will earn 4 percent.LO1-4Question

Asked Feb 14, 2020

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Question 8

Step 1

Future value of an investment today is $20,000 after a time period of 5 years and an interest rate of 4%.

Using the Present Value formula:

Answer: An investment of $16,438.54 should be made today.

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