If you are the owner of a Jani- King cleaning service franchise. And your accountant has determined that your business will need $27,500 in new equipment in 3 years. If your bank is paying 6% interest compounded monthly how much must you invest today to meet this financial goal? Round to the nearest whole dollar.
i = .06/12 = .005
n = 3(12) = 36
P(1.005)^36 = 27500
P = 27500/1.005^36 = $22980.24
or
PV = 27500(1.005)^-36
= $ 22980.24