In order to accumulate $500,000 after 25 years, calculate the amounts that must be invested at the end of each year, if the investe- funds earn: a. 6% compounded annually. (Round your answer to the nearest cent.) PMT $. b. 7% compounded annually. (Round your answer to the nearest cent.) PMT $C c. 8% compounded annually. (Round your answer to the nearest cent.) PMT

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.