If an investment has a goal (future value) of $S after n years, invested at interest rate
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If an investment has a goal (future value) of $S after n years, invested at interest rate i (as a decimal), compounded annually, then the present value P that must be invested is given by P = S(1 + i)-n. Find P for the given S, n, and i.
1. $15,000 after 6 years at 11.5%
2. $80,000 after 20 years at 10.5%
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Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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