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Sam Lopez wants to make a $ 370,000 down payment on a home in eight years. Assume that any investment will earn 10% per year
Sam Lopez wants to make a $ 370,000 down payment on a home in eight years. Assume that any investment will earn 10% per year compounded semiannually. Using the present value table, calculate the amount that Sam should invest today if he wants to obtain $ 370,000 in 8 years. x 5 ? 9% 10% Period 5 6 7 8 1% 0.9515 0.9420 0.9327 0.9235 0.9143 0.9053 0.8963 1% 0.9283 0.9145 0.9010 0.8877 0.8746 0.8617 0.8489 Present value of $1 at the end of a period 2% 3% 4% 5% 6% 7% 0.9057 0.8626 0.8219 0.7835 0.7473 0.7130 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.8706 0.8131 0.7599 0.71070.6651 0.6227 0.8535 0.7894 0.7307 0.67680.6274 0.5820 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 8% 0.6806 0.6302 0.5835 0.5403 0.5002 0.4632 0.4289 0.6499 0.5963 0.5470 0.5019 0.4604 0.4224 0.3875 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 11
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