Your parents plan to spend $20,000 on a car for you upon graduation from college. If you will graduate in three years and your parents can earn 4.125% annually on their investment, how much money must they set aside today for your car?
A) $20,000
B) $17,704
C) $17,716
D) $16,387
Answer: C
Explanation: C) PV = = = $17,715.97
MODE = END
INPUT 3 4.125 ? 0 -20,000
KEY N I/Y PV PMT FV
CPT 17,715.97
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