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10 August, 09:48

Rosalie wants to have $7,500 in 18 years. Use the present value formula to calculate how much Rosalie should invest now at 8% interest, compounded annually in order to achieve her goal.

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  1. 10 August, 10:18
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    PV = $1,876.87

    Explanation:

    Giving the following information:

    Rosalie wants to have $7,500 in 18 years. Use the present value formula to calculate how much Rosalie should invest now at 8% interest.

    We need to use the following formula:

    PV = FV / (1+i) ^n

    PV = 7,500 / (1.08^18) = $1,876.87
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