Answer:
$36,529.26
Step-by-step explanation:
To find the answer, you need to use the formula to calculate the present value:
PV=FV/(1+i)^n, where:
PV= present value
FV= future value= $200,000
i= interest rate= 12%
n= number of periods of time= 15
Now, you have to replace the values in the formula:
PV=200,000/(1+0.12)^15
PV=200,000/(1.12)^15
PV=36,539.26
According to this, the answer is that you need $36,529.26 today.
