In 5 years, we need $25,000. How much do we deposit today if the annual interest rate is 8%, compounded monthly?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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In 5 years, we need $25,000. How
much do we deposit today if the
annual interest rate is 8%,
compounded monthly?
Transcribed Image Text:In 5 years, we need $25,000. How much do we deposit today if the annual interest rate is 8%, compounded monthly?
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