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accounting/math homework help!?

(Ignore income taxes in this problem.) A company wants to have $20,000 at the end of a ten-year period by investing a single sum now. How much needs to be invested in order to have the desired sum in ten years, if the money can be invested at 12%?

a. $6,440.00

b. $7,720.00

c. $3,254.68

d. $3,539.82

1 Answer

Relevance
  • 1 decade ago
    Favorite Answer

    = $20,000.00/(1.12)¹°

    = $20,000.00/3.10584820832

    = $6,439.47

    Answer: $6,439.47 OR a. as an approximation nearest to the exact figure.

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