onnie Cole has just inherited​ $27,000. How much of this money should he set aside today to have ​$25,000 to pay cash for a Ventura​ Van, which he plans to purchase in one​ year? He can invest at 1.4​% ​annually, compounded annually

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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Ronnie Cole has just inherited​ $27,000. How much of this money should he set aside today to have

​$25,000

to pay cash for a Ventura​ Van, which he plans to purchase in one​ year? He can invest at

1.4​%

​annually, compounded annually.

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