Answer: a) $18,605
Explanation:
The amount he can borrow today will be an amount that when grown at a rate of 7.5% per year will equal $20,000 in a year.
20,000 = Amount + ( Amount * rate * time)
20,000 = Amount + (7.5% * Amount)
2,000,000 = 1.075 * Amount
Amount = $18,605
