Five years ago, Jane invested $5,000 and locked in an 8 percent annual interest rate for 25 years (end 20 years from now). James can make a 20-year investment today and lock in a 10 percent interest rate. How much money should he invest now in order to have the same amount of money in 20 years as Jane?
A) $3,160.43
B) $3,464.11
C) $5,089.91
D) $7,346.64

Question

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The Answer of Five years ago, Jane invested $5,000 and locked in an 8 percent annual interest rate for 25 years (end 20 years from now). James can make a 20-year investment today and lock in a 10 percent interest rate. How much money should he invest now in order to have the same amount of money in 20 years as Jane?
A) $3,160.43
B) $3,464.11
C) $5,089.91
D) $7,346.64

Five Years Ago, Jane Invested $5,000 and Locked in an 8