Answer:
PV= $48,295.99
Explanation:
Giving the following information:
Future Value (FV)= $150,000
Number of periods (n)= 10 years
Interest rate (i)= 12% = 0.12
To calculate the initial investment (PV), we need to use the following formula:
PV= FV / (1+i) n
PV= 150,000 / (1.12^10)
PV= $48,295.99
