In three years you plan to take a family vacation to Florida at an estimated cost of $3500. If you can earn an average of 4% per year, how much must you invest today to have the funds needed for the planned vacation? O A. $3,937 O B. $3,920 Oc. $3,111 O D. $3,125
In three years you plan to take a family vacation to Florida at an estimated cost of $3500. If you can earn an average of 4% per year, how much must you invest today to have the funds needed for the planned vacation? O A. $3,937 O B. $3,920 Oc. $3,111 O D. $3,125
Chapter13: Investment Fundamentals
Section: Chapter Questions
Problem 2DTM
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![In three years you plan to take a family vacation to Florida at an estimated cost of $3500. If you can earn an average of 4% per year, how much must you invest today to have the funds needed for the planned
vacation?
O A. $3,937
O B. $3,920
O c. $3,111
O D. $3,125
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Transcribed Image Text:In three years you plan to take a family vacation to Florida at an estimated cost of $3500. If you can earn an average of 4% per year, how much must you invest today to have the funds needed for the planned
vacation?
O A. $3,937
O B. $3,920
O c. $3,111
O D. $3,125
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