Cody invests $1,800 per year from his summer wages at a 4% annual interest rate. He plans to take a European vacation at the end of 4 years when he graduates from college. How much will he have available to spend on his vacation? (^PV^of^$1, ^FV^of^$1, ^PVA^of^$1, and ^FVA^of^$1) (Use appropriate factor(s) from the tables provided.) A) $7,643.70 B) $7,200.00 C) $7,488.00 D) $6,912.00 E) $7,787.52

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Quizplus · Accepted Answer

Cody will have $7,643.70 available to spend on his vacation. This is calculated using the future value of an annuity formula: FV = P * [(1 + r)^n - 1] / r, where P is the annual payment, r is the annual interest rate, and n is the number of years. In this case, P = $1,800, r = 4%, and n = 4.

Cody Invests $1,800 Per Year from His Summer Wages at a 4