How much must I invest today in order to have $25,000 in 5 years assuming 12% interest compounded annually?
A)$14,185.75.
B)$15,888.00.
C)$18,681.50.
D)$17.624.00.

Name: How much must I invest today in order to have $25,000 in 5 years assuming 12% interest compounded annually? A)$14,185.75. B)$15,888.00. C)$18,681.50. D)$17.624.00.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To find the present value, use the formula: PV = FV / (1 + r)^n. Here, FV = $25,000, r = 0.12, and n = 5. PV = 25000 / (1.12)^5 = $14,185.75.

How Much Must I Invest Today in Order to Have