You just started college and plan to go to for a trek to Everest Base Camp for a trek after you graduate four years from now. The trip is expected to cost a total of $15,000 at that time. Your parents have agreed to deposit $2,000 each year for the next four years in a savings account that yields 5% annually. Uncle Jack has agreed to pay for all remaining expenses. If you are going to put Uncle Jack's gift in an investment earning 10% over the next four years, how much must he deposit today, so you can go to your trekking trip to Everest Base Camp four years from today (round to nearest dollar)? O a. $4,357 O b. $4,781 O c. $7,000 O d. $6,364
You just started college and plan to go to for a trek to Everest Base Camp for a trek after you graduate four years from now. The trip is expected to cost a total of $15,000 at that time. Your parents have agreed to deposit $2,000 each year for the next four years in a savings account that yields 5% annually. Uncle Jack has agreed to pay for all remaining expenses. If you are going to put Uncle Jack's gift in an investment earning 10% over the next four years, how much must he deposit today, so you can go to your trekking trip to Everest Base Camp four years from today (round to nearest dollar)? O a. $4,357 O b. $4,781 O c. $7,000 O d. $6,364
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You just started college and plan to go to for a trek to Everest Base Camp for a trek
after you graduate four years from now. The trip is expected to cost a total of
$15,000 at that time. Your parents have agreed to deposit $2,000 each year for the
next four years in a savings account that yields 5% annually. Uncle Jack has agreed
to pay for all remaining expenses. If you are going to put Uncle Jack's gift in an
investment earning 10% over the next four years, how much must he deposit
today, so you can go to your trekking trip to Everest Base Camp four years from
today (round to nearest dollar)?
O a.
$4,357
O b. $4,781
O c. $7,000
O d. $6,364
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