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You want to tracel to Europe to visit relatives when you graduate from AUT three years from now. The trip is expected to cost a
You want to tracel to Europe to visit relatives when you graduate from AUT three years from now. The trip is expected to cost a total of $10000 at that time. Your parents have deposited $5000 for you in a certificate of deposit(CD) paying 6 percent interest annually, maturing three years from now. Aunt Hilda Has agreed to finance the balance. If you are going to put Aunt Hilda's gift in an investment earning 10 percent over the next three years, how much must she deposit now, so you can visit your relatives at the end of three years?
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