Question: Problem 5-17 Calculating Present Values [LO2] Suppose you are committed to owning a $196,000 Ferrari. If you believe your mutual fund can achieve an annual

Problem 5-17 Calculating Present Values [LO2]

Suppose you are committed to owning a $196,000 Ferrari. If you believe your mutual fund can achieve an annual rate of return of 12 percent and you want to buy the car in 9 years on the day you turn 30, how much must you invest today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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