Your local travel agent is advertising an extravagant global vacation. The package deal requires that you pay $5,000 today,$15,000 one year from today,and a final payment of $25,000 on the day you leave two years from today. What is the cost of this vacation in today's dollars if the discount rate is 6%?
A) $39,057.41
B) $41,400.85
C) $43,082.39
D) $44,414.14
E) $46,518.00
Correct Answer:
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