$3$

Problem $5-5$ Calculating Present Value $[$LO$5-4]$

$0\mathrm{.}75$

Brenda Young desires to have $$24,000$ eight years from now for her daughter's college fund. If she will earn $8$ percent $($compounded annually$)$ on her money, what amount should she deposit now? $($Exhibit $1-$A$,$ Exhibit $1-$B$,$ Exhibit $1-$C$,$ Exhibit $1-$D$)$

Note: Use appropriate factor$($s$)$ from the tables provided. Round time value factor to $3$ decimal places and final answer to nearest whole number.

Amount to be deposited

References