You would like to give your daughter $75,000 towards her college education 17 years from now. how much money must you set aside today for this purpose if you can earn 8 percent on your investments?
The formula is A=p (1+r)^t A future value 75000 p present value? R interest rate 0.08 T time 17 years Solve the formula for p P=A ÷ (1+r)^t P=75,000÷(1+0.08)^(17) P=20,270.17
