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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]2 years ago
7 0

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

#SPJ1

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Explanation:

Contribution margin from each customer of the individual business:

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Total Contribution margin = Revenue – Variable cost

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Contribution margin from each customer of the individual business :-   = Total Contribution margin/customers

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