The Solution to This Problem Requires Time Value of Money

question 47

Multiple Choice

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations.
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Josh and Sara want to buy a house in four years.If the house will cost $180,000,how much must they deposit at the end of every year for the next four years at 5% compounded annually in order to buy the house?

• A)$32,040
• B)$36,990
• C)$41,763
• D)$45,000