Answer:
We should deposit $85,000 today.
Explanation:
Future value is value of asset or security at a later date in future with incorporating the effects of growth rate. We have decided to save $85,000 which will then grow to $107,311 for Four years. The year 4 rate is 6% which will be used to compute the future value of savings.
FV = PV * [tex](1 + r)^{n}[/tex]
FV = 85,000 * [tex]1.06^{4}[/tex]
Future value = 107,311
