In 6 years you want to have $20,000 to purchase a new car (in other words, what is the present value of $20,000 6 years from now). Assuming an interest rate of 12%, how much would you need to invest now? PV of $1 Factor (n=6, i-12%): 0.507 PV of Annuity Factor (n-6, 1-12%): 4.111 FV of $1 Factor (n-6, 1-12%): 1.974 FV of Annuity Factor (n-6, 1-12%): 8.115 $10,140 $14.400 $20,000 $82,220