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Lisa's Opportunity Cost Rate Is 10 Percent Compounded Annually

Question 27

Multiple Choice

Lisa's opportunity cost rate is 10 percent compounded annually. How much must she deposit in an account today if she wants to receive $3,200 at the end of each of the next 12 years? Use the equation method to determine the amount to be deposited today. 


A) $17,226
B) $14,868
C) $23,252
D) $18,725
E) $21,804

Correct Answer:

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