Question

Suppose that, to cover some of your college expenses, you are obtaining a personal loan from you uncle in the amount of $25,000 (now) to be repaid in two years. if your uncle could earn 8% interest (compounded annually) on his money invested in various sources, what minimum lump-sum payment two years from now would you make your uncle happy economically?

Answer 1

I believe the answer should be $29,160