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Present Value of a Future Lump Sum Problem: David and Iantha expect their 2-year-old daughter to get married someday. They estimate that her wedding would

  1. Present Value of a Future Lump Sum Problem: David and Iantha expect their 2-year-old daughter to get married someday. They estimate that her wedding would cost $50,000 in 25 years, when they anticipate she will marry. What amount do they need to set aside today for their daughters wedding, if the amount invested today earns a conservative 4% a year.

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