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Question 15 (1 point) You would like to to take some time off work to travel. Each month you would like to spend $3,500 for a
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Answer #1

Solution:

monthly interest rate = 16% / 12 = 1.333333%

Present value of monthly spending = $3,500 * Cumulative PV factor at 1.33333% for 24th period to 40th period

= $3,500 * 11.15034 = $39,026

Therefore amount to be set aside today = $39,026

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