In five years we need $125,000. How much do we deposit today if the annual interest rate is 8%, compounded annually?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 14EA: How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one...
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In five years we need $125,000. How much do we
deposit today if the annual interest rate is 8%,
compounded annually?
Transcribed Image Text:In five years we need $125,000. How much do we deposit today if the annual interest rate is 8%, compounded annually?
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