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You would like to give your daughter $75,000 towards her college education 20 years from now....

You would like to give your daughter $75,000 towards her college education 20 years from now. How much money must you set aside today for this purpose if you can earn 8 percent on your investments? Round the answer to two decimal places.

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Answer #1

Here, we need to calculate the present value which is the discounted value of the sum given

Future value = $75,000

Interest rate = 8 %=0.08

Time = 20 years

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