Lori wants to give her daughter $25,000 in 8 years to start her own business. How much should Lori invest today, at an annual in

Question

Naddik [55]

2 years ago

6

Lori wants to give her daughter $25,000 in 8 years to start her own business. How much should Lori invest today, at an annual in

terest rate of 8%, compounded annually, to have $25,000 in 8 years

Business

1 answer:

Dovator [93] · Answer 1 · 2023-05-18T15:59:57+03:00

The amount of money that Lori should invest today is $13,506.72.

<h3>How much should Lori invest today?
</h3>

In order to determine the amount of money that Lori should invest today, the present value of $25,000 has to be determined. Present value is the sum of discounted cash flows.

Present value = $25,000 / (1.08^8) = $13,506.72

To learn more about present value, please check: brainly.com/question/26537392

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