Peter is saving money for a vacation he wants to take five years from now.If the trip will cost $1,000 and he puts his money into a savings account paying 4 percent interest,compounded annually,how much would Peter need to deposit today to reach his goal without making further deposits?
A) $961.54.
B) $923.75.
C) $867.81.
D) $821.93.
Correct Answer:
Verified
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