$36578.14 would be invested today at Compounded annually to have $55,000 available for the purchase of a car at the end of seven years from now
A purchase made only with the intention of creating capital or earnings growth is known as an investment. A person can invest any amount of data that he or she has.
The data that is given in the question is:
The amount = $55,000
Time period = 7 years
rate of return = 6%
The present value of the investment:
Present value = future value / (1+rate of return) x number of years
Putting the value in the above-given formula
Here present value= $55000 / (1+6%) x 7
=$36578.14
The person needs to invest $36578.14.
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