(Ignore income taxes in this problem.) James just received an $8,000 inheritance check from the estate

of his deceased rich uncle. James wants to set aside enough money to pay for a trip in 5 years. If the trip is

expected to cost $5,000 and the rate of return is 12% per year, how much of the $8,000 must James

deposit now if in order to have the $5,000 in five years?

A. $2,535

B. $2,000

C. $5,000

D. $2,835