A Young Couple Wants to Start a Family in Five

question 32

Multiple Choice

A young couple wants to start a family in five years time. They plan to add an addition to their home in four years so it is ready when they start their family. They estimate that $ 130,000 will be needed in four years. They can earn 8% on an investment now. If the couple makes one lump sum deposit now in order to have $ 130,000 in four years, how much should they deposit.

• A)$ 94,399
• B)$ 93,763
• C)$ 95,216
• D)$ 95,355

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Definitions:

Ending Inventory

The total value of all merchandise or goods that a company has in stock at the end of an accounting period.