Answer: $ 18681.45
Step-by-step explanation:
Given: Future value : [tex]FV=\$25,000[/tex]
The rate of interest : [tex]r=0.06[/tex]
The number of time period : [tex]t=5[/tex]
The formula to calculate the future value is given by :-
[tex]\text{Future value}=P(1+i)^n[/tex], where P is the initial amount deposited.
[tex]\Rightarrow\ 25000=P(1+0.06)^5\\\\\Rightarrow\ P=\dfrac{25000}{(1.06)^5}\\\\\Rightarrow\ P=18681.4543217\approx=18681.45[/tex]
Hence, the lump that must be deposit today : $ 18681.45
