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You need $85,000 in 10 years. If you can earn .78 percent per month, how much will you have to deposit today? (Do not round i

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Answer #1

Number of periods = 10 * 12 = 120

Present value = Future value / (1 + r)n

Present value = 85,000 / (1 + 0.0078)120

Present value = 85,000 / 2.540519

Present value = $33,457.73

Amount of deposit should be $33,457.73

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