How much must you invest today
Problem
Suppose you are still committed to owning a $190,000 BMW. If you believe your mutual fund can achieve a 12% annual rate of return and you want to buy the car in nine years on the day you turn 30, how much must you invest today?
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If you believe your mutual fund can achieve 12% annual rate of return and you want to buy car in nine years on day you turn 30, how much must you invest today?
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