Alfredo wants to know how much he must put in a bank account today to achieve an amount equal to $20,000 in today's value (year 0) in 14 years. Inflation is 8%. The interest rate offered by the bank is 5% per year.

a) Calculate the conversion to current dollars of the $20,000 $__________ .

b) How much should you deposit today in the bank to achieve your goal? $________

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