The school district needs to pass a bond levy for funding to remodel existing schools and to build new schools. Expenditures for the new and remodeled buildings will begin 18 months after passage of the bond

If the school district receives all funding immediately after the passage of the bond and can invest the funds at a rate of 3.75% per year, how large must the bond be for the district to have $45,000,000 at the start of construction?
A) $45,000,000
B) $47,554,834
C) $42,556,397
D) $42,582,422


Answer: D
Explanation: D) PV = = = $42,582,421.62
MODE = END
INPUT 1.5 3.75 ? 0 -45,000,000
KEY N I/Y PV PMT FV
CPT 42,585,421.62

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