
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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How much should be invested now at 7.4% compounded annually to have $48,000 in 15 years?
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Concept
In this question, we have to calculate present value of $ 48,000 to be received in 15 years at 7.4% compounded annually. Present value is the present worth of a future amount to be received which is calculated by discounting the future value at an appropriate discount rate.
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