1.
Future value = $410,000
Time period (n) = 8 year
Interest rate (i) = 12%
Amount to be invested = ?
Amount to be invested = Future value x PVF (i%, n)
= 410,000 x PVF (12%, 8)
= 410,000 x 0.40388
= $165,591
2.
Interest rate (i) = 13%
Amount to be invested = Future value x PVF (i%, n)
= 410,000 x PVF (13%, 8)
= 410,000 x 0.37616
= $154,226
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