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Present Value and Future Value Jeffrey Inc. estimates that it will need $235,000 in 10 years to expand its manufacturing facilities. A bank has agreed
Present Value and Future Value
Jeffrey Inc. estimates that it will need $235,000 in 10 years to expand its manufacturing facilities. A bank has agreed to pay Jeffrey 4% interest compounded annually if the company deposits the entire amount now needed to accumulate $235,000 in 10 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. $
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