Question: Computing the Present Value of a Single Amount Reynolds must accumulate $ 4 0 , 0 0 0 in eight years to purchase replacement equipment.

Computing the Present Value of a Single Amount
Reynolds must accumulate $40,000 in eight years to purchase replacement equipment. Reynolds plans to invest funds today to have the $40,000 accessible at that time.
Round answers to the nearest whole dollar.
Do not use negative signs with any of your answers.
a. Assuming a 6% return compounded annually on its investment, how much must Reynolds invest now to reach the goal? Answer 1
b. Assuming an 8% return compounded annually on its investment, how much must Reynolds invest now to reach the goal?

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