Present Value: how much to invest now at 8% (qtrly) to have $40K in 6 yrs?

[CCaldwell]

1. Bill Blum needs $40,000 6 years from today to attend V.P.R. Tech. How much must Bill put in the bank today (8% quarterly) to reach his goal?

2. Bob Fry wants to buy his grandson a Ford Taurus in 4 years. The cost of a car will be $28,000. Assuming a bank rate of 4% compounded quarterly, how much must Bob put in the bank today?

Thanks!
Connor

 

[Deleted member 4993]

1. Bill Blum needs $40,000 6 years from today to attend V.P.R. Tech. How much must Bill put in the bank today (8% quarterly) to reach his goal?

2. Bob Fry wants to buy his grandson a Ford Taurus in 4 years. The cost of a car will be $28,000. Assuming a bank rate of 4% compounded quarterly, how much must Bob put in the bank today?

Thanks!
Connor

What are your thoughts?

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[stapel]

1. Bill Blum needs $40,000 6 years from today to attend V.P.R. Tech. How much must Bill put in the bank today (8% quarterly) to reach his goal?

2. Bob Fry wants to buy his grandson a Ford Taurus in 4 years. The cost of a car will be $28,000. Assuming a bank rate of 4% compounded quarterly, how much must Bob put in the bank today?

They gave you a formula for this. How far have you gotten in plugging the given values in for the appropriate variables, and simplifying for the requested answers?

Please be complete. Thank you!