2. Ahmad is looking forward to retiring in 2036. He wants to invest some money so that he can earn 10,000 per year for the next 20 years of his life. If the rate of interest is 8% compounded annually, what is the amount of the current investment?et a. $98,181 b. $90,181 c. $88,181 d. $80,181

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
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2. Ahmad is looking forward to retiring in 2036. He wants to invest some money so that he can
earn 10,000 per year for the next 20 years of his life. If the rate of interest is 8% compounded
annually, what is the amount of the current investment?t
a. $98,181
b. $90,181
c. $88,181
d. $80,181
Transcribed Image Text:2. Ahmad is looking forward to retiring in 2036. He wants to invest some money so that he can earn 10,000 per year for the next 20 years of his life. If the rate of interest is 8% compounded annually, what is the amount of the current investment?t a. $98,181 b. $90,181 c. $88,181 d. $80,181
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