Robert Jones and his wife Suzie recently opened an investment account with the intention of saving enough to purchase the house of their dreams, a beautiful, little white house on the corner of Michigan Avenue and Maple Street.  Their goal is to have $45,000 down in five years.  Their account will guarantee them a return of 8% compounded annually.  How much do they need to put into the account right now to reach their objective? $46,778.96 $39,546.09 $51,214.75 $30,626.24

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 7CE
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Robert Jones and his wife Suzie recently opened an investment account with the intention of saving enough to purchase the house of their dreams, a beautiful, little white house on the corner of Michigan Avenue and Maple Street.  Their goal is to have $45,000 down in five years.  Their account will guarantee them a return of 8% compounded annually.  How much do they need to put into the account right now to reach their objective?

$46,778.96

$39,546.09

$51,214.75

$30,626.24

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