Question
You plan to go to Asia to visit friends in five years. The trip is expected to cost a total of $20,000 at that time.
You plan to go to Asia to visit friends in five years. The trip is expected to cost a total of $20,000 at that time. Your parents have deposited $10,000 for you in a Certificate of Deposit paying 5% interest annually, maturing five years from now. Uncle Lee has agreed to pay for all remaining expenses. If you are going to put Uncle Lee's gift in an investment earning 8% over the next five years, how much must he deposit today, so you can visit your friends five years from today?
| A. | $5,926.67 | |
| B. | $3,039.01 | |
| C. | No answer can be found. | |
| D. | $4,975.24 | |
| E. | $4,925.51 |
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
