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Problem 1: Stuart wants to start a business 12 years later and he will need $70,000 at that time to invest in the business. To reach his goal, he plans to invest a certain amount today in a bank certificate of deposit that will pay him 7.8 percent. How much will he have to invest today to achieve his target?
a. $29,707.48
b. $28,423.20
c. $124,817.06
d. $27,400.10
e. $27,688.52
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What is the total sales (in units and dollars) that must be generated for the company to earn a profit of $70,000?
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