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John turned 58 years old he plans to retire in 12 years. When he retires, he would like to take an extended vacation, which he

John turned 58 years old he plans to retire in 12 years. When he retires, he would like to take an extended vacation, which he expects will cost at least $40,000. What lump-sum amount must he invest now to have the needed $40,000 at the end of 12 years if he invests at

  • 8%?
  • 12%?

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