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1. What is the Present Value for $15,000 in 30 years at discount rate of 12%? 2. ABC mutual fund has an average 6% annual rat
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Answer #1

Solution 1:

Present value = $15,000 * PV factor at 12% for 30th period

= $15,000 * 0.03338 = $501

Solution 2:

Future value = $80,000 (1+0.06)^20 = $80,000 * 3.20714 = $256,571

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