In five years your oldest child will be in 8th grade, at which point you and your family plan to vacation in Europe. You estimate that you will need $20,000 for the trip
How much do you need to set aside today if you can place your money in an investment vehicle earning an average of 4.50% per year?
A) $14,961
B) $15,073
C) $16,049
D) $16,058
Answer: C
Explanation: C) PV = = = $16,049.02
MODE = END
INPUT 5 4.5 ? 0 -20,000
KEY N I/Y PV PMT FV
CPT 16,049.02
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