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What lump-sum payment must he place in the fund

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Steve Short wants to set up a fund to pay for his daughter's education. In order to pay her expenses, he will need $23,000 in four years, $24,900 in five years, $26,000 in six years, and $27,400 in seven years. If he can put money into a fund that pays 6% interest, what lump-sum payment must he place in the fund today to meet his college funding goals? Round the answer to the nearest cent. Round PV-factor to three decimal places.

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In the given assignment we were required to discount the future cash outflows to determine the amount to be invested into the fund to meet the future outflows.

Reference no: EM13977886

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