the investment was $14,174.196
explanation:
a lump sum means that the father of the example made one deposit and leave it be.
we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24
![capital * (1+0.045)^{28} = 48,613.24](/tex.php?f=capital * (1+0.045)^{28} = 48,613.24)
now clearing the formula to solve for capital we got:
![capital = \frac{48,613.24}{(1+0.045)^{28}}](/tex.php?f=capital = \frac{48,613.24}{(1+0.045)^{28}})
and we reach the answer investment = $14,174.20