Present Value and Future Value

Jeffrey Inc. estimates that it will need $250,000 in 8 years to expand its manufacturing facilities. A bank has agreed to pay Jeffrey 5% interest compounded annually if the company deposits the entire amount now needed to accumulate $250,000 in 8 years.

Use the appropriate present or future value table:

FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1

Required:

How much money does Jeffrey need to deposit now? Be sure to use all digits shown on the table and round your answer to a whole dollar. $