Answer:
$19,870.39
Explanation:
To find the amount that you will have to deposit today, you have to use the formula to calculate the present value:
PV=FV/(1+i)^n, where
PV= Present value
FV= Future value=$25,000
i= interest rate=4.7%
n= number of periods of time= 5 years
PV=25,000/(1+0.047)^n
PV=25,000/(1.047)^5
PV=19,870.39
According to this, the answer is that you will have to deposit today $19,870.39.
