16th Edition

ISBN: 9781323425084

Author: MILLER-NOBLES

Publisher: PEARSON C

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Chapter 12, Problem 9AQC

Mike Gordon wishes to have $80,000 in five years. If he can earn annual interest of 2%, how much must he invest today?

a. $42,170

b. $72,480

c. $76,080

d. $88,320

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Chapter 12, Problem 8QC

Chapter 12, Problem 10BQC

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Chapter 12 Solutions

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Mike Gordon wishes to have $80,000 in five years. If he can earn annual interest of 2%, how much must he invest today? a. $42,170 b. $72,480 c. $76,080 d. $88,320

Solution Summary: The author explains that the present value is the value of today's amount expected to be paid or received in the future at a compound interest rate.

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Chapter 12 Solutions