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you need to have 35000 on hand to buy a new lexus fie years from today. to achieve that goal, you want know how much you must invest today in certificate of deposit guaranteed to return you 3% per year.
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you need to have 35000 on hand to buy a new lexus fie years from today. to achieve that goal, you want know how much you must invest today in certificate of deposit guaranteed to return you 3% per year. to help determine how much to investment today you will use

User Drorsun
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3.7k points

1 Answer

6 votes

Answer:

$30,191.31

Step-by-step explanation:

The formula for calculating future value:

PV = FV (1 + r) ^-n

FV = Future value

P = Present value

R = interest rate

N = number of years

35,000(1.03)^-5 = $30,191.31

User KirkSpaziani
by
4.3k points
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