You just started college and plan to go to for a trek to Everest Base Camp for a trek after you graduate four years from now. The trip is expected to cost a total of $15,000 at that time. Your parents have agreed to deposit $2,000 each year for the next four years in a savings account that yields 5% annually. Uncle Jack has agreed to pay for all remaining expenses. If you are going to put Uncle Jack's gift in an investment earning 10% over the next four years, how much must he deposit today, so you can go to your trekking trip to Everest Base Camp four years from today (round to nearest dollar)? O a. $4,357 O b. $4,781 O c. $7,000 O d. $6,364
You just started college and plan to go to for a trek to Everest Base Camp for a trek after you graduate four years from now. The trip is expected to cost a total of $15,000 at that time. Your parents have agreed to deposit $2,000 each year for the next four years in a savings account that yields 5% annually. Uncle Jack has agreed to pay for all remaining expenses. If you are going to put Uncle Jack's gift in an investment earning 10% over the next four years, how much must he deposit today, so you can go to your trekking trip to Everest Base Camp four years from today (round to nearest dollar)? O a. $4,357 O b. $4,781 O c. $7,000 O d. $6,364
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 35P
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Transcribed Image Text:You just started college and plan to go to for a trek to Everest Base Camp for a trek
after you graduate four years from now. The trip is expected to cost a total of
$15,000 at that time. Your parents have agreed to deposit $2,000 each year for the
next four years in a savings account that yields 5% annually. Uncle Jack has agreed
to pay for all remaining expenses. If you are going to put Uncle Jack's gift in an
investment earning 10% over the next four years, how much must he deposit
today, so you can go to your trekking trip to Everest Base Camp four years from
today (round to nearest dollar)?
O a.
$4,357
O b. $4,781
O c. $7,000
O d. $6,364
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