What the amount of money to invest today is

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Problem 1: You estimate that it will take five years to complete your college education. Your parents want to invest enough money today at an interest rate of 8% compounded annually to allow you to withdraw $18,000 at the end of each year for the next five years, with nothing left at the end. The amount of money to invest today is:

Multiple Choice

Option 1: $71,874.

Option 2: $65,994.

Option 3: $26,450.

Option 4: $90,000.

Option 5: None of the answers is correct.

Reference no: EM132952830

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