I am having trouble seeing how the following result was determined:
Tom Simpson wishes to purchase a new combine. The cost is $180,000. How much money must be put in a savings account that compounds at 6% to have $180,000 in 5 years? (Round to the nearest dollar).
When I attempt to calculate the problem I am receiving the following result:
A Present Value Interest Factor Table was also included with Period 5 showing a 6% interest rate at .7473
I am not sure how the determination was made.