What amount must be invested today at an annual interest rate of 5.5% if you want to purchase a $550,000 machine 5 years in the future?
a. What is the number of time periods (n) you should use in solving this problem?
b. What rate of interest (i), per period of time, should be used in solving this problem?
c. Is the present single amount of money (P) known? (Yes, No)
d. What is the desired future amount?
f. Which time value factor should be used to solve this problem?
e. What is the total amount that must be invested today?