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A person wants to deposit an unknown lump-sum amount into an investment opportunity 2 years from now that is large enough to withdraw $4000 per year for state university tuition for 5 years starting 3 years from now. The interest rate is 10%/year. The closest amount of the lump sum is:

A person wants to deposit an unknown lump-sum amount into an investment opportunity 2 years from now that is large enough to withdraw $4000 per year for state university tuition for 5 years starting 3 years from now. The interest rate is 10%/year. The closest amount of the lump sum is:

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 6E
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A person wants to deposit an unknown lump-sum amount into an investment opportunity 2 years from now that is large enough to withdraw $4000 per year for state university tuition for 5 years starting 3 years from now. The interest rate is 10%/year. The closest amount of the lump sum is:
Transcribed Image Text:A person wants to deposit an unknown lump-sum amount into an investment opportunity 2 years from now that is large enough to withdraw $4000 per year for state university tuition for 5 years starting 3 years from now. The interest rate is 10%/year. The closest amount of the lump sum is:
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