Alfredo wants to know how much he must put in a bank account today to have within 14 years an amount equivalent to $ 20,000 in value today (year 0). Inflation is 8%. The interest rate offered by the bank is 5% per year. a) Calculates the conversion to current dollars of $20,000 $ b) How much should you deposit with the bank today to achieve your goal? $
Alfredo wants to know how much he must put in a bank account today to have within 14 years an amount equivalent to $ 20,000 in value today (year 0). Inflation is 8%. The interest rate offered by the bank is 5% per year. a) Calculates the conversion to current dollars of $20,000 $ b) How much should you deposit with the bank today to achieve your goal? $
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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![Use Excel
Alfredo wants to know how much he must put in a bank account today to have within 14 years
an amount equivalent to $ 20,000 in value today (year 0). Inflation is 8%. The interest rate
offered by the bank is 5% per year. a) Calculates the conversion to current dollars of $20,000 $
b) How much should you deposit with the bank today to achieve your goal? $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6df95d2b-42bf-49ce-8f9c-2bad8f2ecdb6%2Fbf3812b9-f7b5-4570-b9be-5dacdcf61652%2F956cpeu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use Excel
Alfredo wants to know how much he must put in a bank account today to have within 14 years
an amount equivalent to $ 20,000 in value today (year 0). Inflation is 8%. The interest rate
offered by the bank is 5% per year. a) Calculates the conversion to current dollars of $20,000 $
b) How much should you deposit with the bank today to achieve your goal? $
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