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2. I want to buy a house in 5 years. I need to have a down...

2. I want to buy a house in 5 years. I need to have a down payment of $50,000. How much do I need to have today in order to have the down payment, if I can earn 4%?

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Answer #1

Present value of the future amount = 50,000/1.045

present value of the future amount = 41,096.36

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