Deposit the present value-investment account

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Bill O'Blarney tells you that he plans to give you $1 million as a birthday present on your 75th birthday. You are now 25—and a bit skeptical. You suggest that he deposit the present value of this nice gift today in an investment account for you. If the investment could earn 8 percent annually for the next 50 years, how much should he deposit today? (Ignore taxes.)

Reference no: EM13811316

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