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You want to create a college fund for a child who is now 5 years old. The fund should grow to $40,000 in 13 years.

You want to create a college fund for a child who is now 5 years old. The fund should grow to $40,000 in 13 years. If an investment was made available to you that would yield 5% per year, how much must you invest in a lump sum NOW to realize the $40,000 when needed?

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