Interest and Investment : Present Value and Rate of Investment to Obtain a Desired Amount
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Your company needs $500,000 in two years time for renovations and can earn 9% interest on investments.
a) What is the present value of the renovations?
b) If your company deposits money continuously at a constant rate throughout the two-year period, at what rate should your money be deposited so that you have $500,000 when you need it?
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Present value of investment and rate of investment to obtain a desired amount are calculated.
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Your company needs $500,000 in two years time for renovations and can earn 9% interest on investments.
a) What is the present value of the renovations?
I think ...
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