A company is setting aside $21,354 today,and wishes to have $30,000 at the end of three years for a down payment on a piece of property.What interest rate must the company earn?

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Josiah Jordan · Accepted Answer

Final Answer : 12%Future Value = Present Value * FV Factor$30,000 = $21,354 * FV Factor; FV Factor = 1.40491.4049 is the FV factor on the Future Value table; n = 3; i = 12%

A company is setting aside $21,354 today,and wishes to have $30,000 at the end of three years for a down payment on a piece of property.What interest rate must the company earn?

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