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Lori wants to give her daughter $25,000 in 8 years to start her own business. How much should Lori invest today, at an annual interest rate of 8%, compounded annually, to have $25,000 in 8 years

Respuesta :

The amount of money that Lori should invest today is $13,506.72.

How much should Lori invest today?

In order to determine the amount of money that Lori should invest today, the present value of $25,000 has to be determined. Present value is the sum of discounted cash flows.

Present value = $25,000 / (1.08^8) = $13,506.72

To learn more about present value, please check: https://brainly.com/question/26537392

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