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Jamie wants to set aside enough money now to go on vacation in two years. She has developed the following estimates: Estimated Cash Outflows Probability
Jamie 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 $2,700 30% $3,300 50% $4,500 20% Time periods Factor PV of 1 2 90703 PV Annuity of 1 2 1.85941 FV of 1 2 1.10250 FV Ordinary annuity 2 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? O $3,704 O $3,048 O $3,360 O $6,248
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