Answer:
$180,939.69
Step-by-step explanation:
FV= Future Value = 400000
r = Rate of Interest as decimal = 12% / 100 = 0.12
t = number of years = 7
Formula for FV
FV = PV(1 + r)^t
Plugging in values
400,000 = PV (1 + 0.12)^7 = PV(1,12)^7
PV = 400,000/(1.12)^7
PV = $180,939.69
