Answer:
$293,562.707
Step-by-step explanation:
As for the provided details we know,
Janet needs $51,500 from end of 7th year for upcoming 20 years.
The present value of 20 installments of $51,500 shall be @ 6% from year 7 to year 8.0858
Thus total value = $51,500 [tex]\times[/tex] 8.0858 = $416,418.7
Now the compound interest factor for 6 year @ 6 % = 1.4185
Thus, value to be invested today = $416,418.70/1.4185 = $293,562.707
As this when compounded annually will provide the balance as required at the end of 6 years.
