Helen wants to set aside enough money now to go on vacation in two years. She has developed the following estimates: Estimated Cash Outflows Probability Assessment $4200 PV of 1 $4800 FV of 1 $6000 PV Annuity of 1 FV Ordinary annuity O $4408 $5358 $4860 O$9036 2 2 Time periods Factor 2 30% 2 50% 20% 0.90703 1.85941 1.10250 2.05 How much should she deposit today in an account earning 5%, compounded annually, to have sufficient cash on hand to pay for the vacation?

Helen wants to set aside enough money now to go on vacation in two vears: She has developed the following estimates How much should the deposit today in an account earning 5%, compounded annqally, to have wutficient cash on hand to ow for the bacation? 54409 55358 54860 $9036