Answered: need $20,000 five years from now. The…

need $20,000 five years from now. The account pays 9% compounded annually. If you can receive $5,000 at the end of year 2, how much do you have to deposit today? A. 7,058.13 B. 8,790.23 C. 9,748.97

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 25P

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Question

You need $20,000 five years from now. The account pays 9% compounded annually. If
you can receive $5,000 at the end of year 2, how much do you have to deposit today?
A. 7,058.13
B. 8,790.23
C. 9,748.97

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