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Solve the Problem. -Suppose You Start Saving Today for a $5000 Down Payment

Question 219

Multiple Choice

Solve the problem.
-Suppose you start saving today for a $5000 down payment that you plan to make on a condo in 2 years. Assume that you make no deposits into the account after your initial deposit. The account
Has annual compounding and an APR of 5%. How much would you need to deposit now to reach
Your $5000 goal in 2 years?


A) $4893.92
B) $3984.49
C) $4839.29
D) $4535.15

Correct Answer:

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