Suppose you need 20000 in three years to pay tuition at MU I

Suppose you need $20,000 in three years to pay tuition at MU. If you can earn 8% on your money, how much do you need to set aside in savings today?

FV = PV (1 + r)ⁿ

20000 = PV (1+0.08)³

PV = 20000 / 1.259712

PV = $15,876.645

need to set aside $15876.645 in savings today to get $20000 in 3 years with 8%.