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Suppose you need $10,000 in one year for the down payment on a new car. If you can earn 7% annually, how much do you need to invest today?
• Formula Approach
• PV = 10,000 / (1.07)1 = 9345.79
• Calculator Approach
• 1N
• 7I/Y
10,000 FV
CPT PV = -9345.79
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