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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:

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 Therefore, Option (C) is correct.

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3 years ago
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3 years ago
Which factor caused a higher oil prices to directly lead to inflation?
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7 0
2 years ago
Darwin Inc. sells a particular textbook for $20. Variable expenses are $14 per book. At the current volume of 50,000 books sold
Ksenya-84 [330]

Answer:

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Explanation:

Giving the following information:

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7 0
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8 0
3 years ago
Read 2 more answers
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