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fireemblam101ovu1gt
05.11.2020 •
Business
John's lifelong dream is to own his own fishing boat to use in his retirement. John has recently come into an inheritance of $500,000. He estimates that the boat he wants will cost $400,000 when he retires in 5 years. How much of his inheritance must he invest at an annual rate of 10% (compounded annually) to buy the boat at retirement?
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Ответ:
PV= $248,368.53
Explanation:
Giving the following information:
Future Value (FV)= $400,000
Number of periods (n)= 5
Interest rate (i)= 10% = 0.1
To calculate the present value (PV), we need to use the following formula:
FV= PV*(1í)^n
Isolating PV:
PV= FV/(1+i)^n
PV= 400,000 / (1.1^5)
PV= $248,368.53
Ответ: