Your grandparents leave on their dream vacation to Antarctica in two years. The cruise vacation will cost them $25,000. If they have already saved $23,500 and are investing it at a rate of 2.75% per year, will they have saved enough money for their trip?
A) No, because they forgot to factor in long underwear expenses.
B) Yes, to have enough money they would have already needed to save $23,375.
C) Yes, to have enough money they would have already needed to save $23,680.
D) No, to have enough money they would have already needed to save $23,680.
Answer: D
Explanation: D) PV = = = $23,679.71
MODE = END
INPUT 2 2.75 ? 0 -25,000
KEY N I/Y PV PMT FV
CPT 23,679.71
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