You are saving for a car that costs $42,000 that you hope to purchase in eight years. How much will you need to deposit today in a savings account that earns 7%, compounded annually, to withdraw enough for the purchase?

(Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest whole dollar amount.)

Multiple Choice

• $39,060

• $24,444

• $39,253

• $72,164