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16. How much would you have to invest today at 8% compounded annually to have $25,000 available for the purchase of a car four years
16. How much would you have to invest today at 8% compounded annually to have $25,000 available for the purchase of a car four years from now? A. $18,267.26 B. $18,375.75 C. $19,147.25 D. $21,370.10 E. None of these Answer: (B ) Pv = FVt x 1l(1 + r)'= 25,000 x 1l(1.08)4 = 25,000 x 0.73503 = 18,375.75
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
