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26 July, 14:14

Find the lump sum that must be deposited today to have a future value of $32,000 in 5 years if funds earn 8% compounded annually

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  1. 26 July, 14:22
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    32000=p (1+0.08) ^5

    Solve for p

    P=32000 / (1.08) ^5

    P=32,000: (1.08) ^ (5)

    P=21,778.67
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