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OpenStudy (anonymous):
Jim Smith believes in 30 years he will need $80,000 to buy a retirement cottage. Assuming he gets an interest rate of 9% compounded annually, how much will he have to invest today to reach his retirement goal?
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OpenStudy (tkhunny):
Use your accumulation formula for a single payment: \(80000 = P\cdot(1.09)^{30}\) Solve for P.
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