Professor G needs $35,000 to buy a car in 5 years. He earns 2.6% on his...

Question

Question

Professor G needs $35,000 to buy a car in 5 years. He earns 2.6% on his money. How much must he invest now to accomplish his goal?

Answer 1

Answer #1

Solution:

Amount to be invested today to reach the goal = $35,000 / (1+0.026)^5

= $35,000 / 1.136938 = $30,784

Answer 2

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