How Much Must Be Deposited Today in an Account Earning

question 116

Multiple Choice

How much must be deposited today in an account earning 6% annually to accumulate a 20% down payment to use in purchasing a car one year from now, assuming that the car's current price is $20,000, and inflation will be 4%?

• A) $3,774.61
• B) $3,782.20
• C) $3,924.53
• D)$4,080.08

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