Mr. Chan's son is now three years old and will go to college in 15 years. Mr. Chan wants $625,000 in a savings account to finance his education at the time. If the account is committed to paying a fixed interest rate of 3% per year, how much money does Mr. Chan need to deposit into the account today to ensure he has $625,000 15 years from now?

Answer rating: 100% (QA)

use the future value formula for compound interest FV PV 1 rn Where FV Future value desired amou... View the full answer