HELP

The City of Bloomington will need $10 million 3 years from now to improve the energy efficiency profile of its communities. Assume the city has a current surplus of $12 million that it can invest in a combination of stocks and bonds. How much will it need to invest today in order to have the desired amount in 3 years? Assume the average annual return on investment is 7%. $10 million $8.16 million $12.25 million