You want to have $13,500 in 8 years for a dream vacation. If you can earn...

You want to have $13,500 in 8 years for a dream vacation. If you can earn an interest rate of .5 percent per month, how much will you have to deposit today?

Multiple Choice

$8,475.09
$12,971.95
$8,470.07
$8,363.57
$8,549.43

Expert Solution

Ans $8,363.57

FV =	Future Value
PV =	Present Value
r =	rate of interest
n=	no of period


PV =	FV/ (1 + r )^n
PV =	13500 / ((1 + 0.5%)^96)
PV =	8363.57

jeff jeffy answered 3 years ago

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You want to have $13,500 in 8 years for a dream vacation. If you can earn...

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