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Your father invested a lump sum 20 years ago at 10% interest for your education. Today,...

Your father invested a lump sum 20 years ago at 10% interest for your education. Today, that account worth $100,000.00. How much did your father deposit 20 years ago?
A. $14,329.72
B. $14,517.19
C. $13,945.11
D. $14,864.36

Solutions

Expert Solution

PV = FV / (1 + r)^t

PV = $100,000.00 / (1 + 0.10)^20

PV = $14,864.36

jeff jeffy answered 2 years ago
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