Daniel M. answered • 07/05/21

Math and Accounting Tutor

First, consider the present value formula.

PV = FV x (1/(1+r)^t)

The future value in this problem is 71,165.59

Our rate is 4%

And our period is 4 annual year (if this is semi-annual, we would double the period)

If we look at the finance calculator, we can enter these values. Present value will be left 0 for now. Enter future value, number of periods, payment amount (0), and interest. The payment will be at the END (when he turns 30). Calculate PV and you're done.

Please let me know if you have any additional questions.