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lvin Miller, owner of Miller Garage, estimates that he will need $18,000 for new equipment in 20 years. Alvin decided to put aside the money today so it will be available in 20 years. Sound Bank offers Alvin 12% interest compounded semiannually. How much must Alvin invest today to have $18,000 in 20 years

lvin Miller, owner of Miller Garage, estimates that he will need $18,000 for new equipment in 20 years. Alvin decided to put aside the money today so it will be available in 20 years. Sound Bank offers Alvin 12% interest compounded semiannually. How much must Alvin invest today to have $18,000 in 20 years

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.17E
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Alvin Miller, owner of Miller Garage, estimates that he will need $18,000 for new equipment in 20 years. Alvin decided to put aside the money today so it will be available in 20 years. Sound Bank offers Alvin 12% interest compounded semiannually. How much must Alvin invest today to have $18,000 in 20 years? 

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