Respuesta :
1)
The amount needed today is $20,490.40
2)
The amount that would be in the savings 12 years from now is $112,609.58
What is present value?
The present value of a future amount is its today's equivalence when the future amount is discounted to today's dollars using rate of return as the discount rate based on the present value formula of a single future sum shown below:
PV=FV/(1+r)^N
PV=present value=unknown
FV=future value=$30,000
r=discount rate=10%
N=number of years that savings would last=4
PV=$30,000/(1+10%)^4
PV=$20,490.40
The value that must be invested today to have $30,000 in 4 years is $20,490.40
What is future value?
Future value of an invested now is the future equivalence of today's amount when it has been compounded based on the rate of return
FV=PV*(1+r)^N
FV=future value=unknown
PV=amount invested today=$50,000
r=rate of return=7%
N=number of years investment would last =12
FV=$50,000*(1+7%)^12
FV=$112,609.58
The value of the savings in 12 years is $112,609.58
Find out more about future value on:https://brainly.com/question/25787382
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