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Peter Is Saving Money for a Vacation He Wants to Take

Question 20

Multiple Choice

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:

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