Question: After graduating from Weatherhead you think you will pursue a PhD program. After getting your PhD, 7 years from now, you will likely want to reward yourself by getting a sports car. The cost of the car at the end of year 7 will be $80,000. How much would you need to invest today (lump sum) in an account that gives you an 7.5% return if you want to buy this car in 7 years and pay cash for it?