Answer:
$8,778
Explanation:
To find the amount of money that you will have to deposit today, you have to use the formula to calculate the present value:
PV=FV/(1+i)^n
PV= present value
FV= future value= 12,500
i= interest rate= 0.003*12(to calculate the rate per year)= 0.036
n= number of periods of time= 10
PV=12,500/(1+0.036)^10
PV=12,500/1.424
PV=8,778
According to this, you will have to deposit today $8,778.
