Find the lump sum that must be deposited today to have a future value of $32,000 in 5 years if funds earn 8% compounded annually.

$21,778.7

Step-by-step explanation:

The formula for a compound interest is;

A = p(1 + r/100)ⁿ

Where A ⇒ Amount accumulated over the years

            r ⇒ rate per year

            n ⇒ the number of years

∴ A = p(1 + r/100)ⁿ

  32,000 = p(1 + 8/100)⁵

  32,000 = p × 1.08⁵

p = 32,000/1.08⁵

   = $21,778.66

Answer to the nearest tenth = $21,778.7

C

Step-by-step explanation: