You just bought new furniture for $5,000. The payment is due in 3 years, same as cash. If you can earn 8% on your money, how much money should you set aside today in order to make the payment when due in three years (rounded to the nearest dollar)?
A. $3,969
B. $4,287
C. $4,624
D. $6,299
Answer:A
You just bought new furniture for $5,000. The payment is due in 3 years, same as cash. If you can earn 8% on your money, how much money should you set aside today in order to make the payment when due in three years (rounded to the nearest dollar)?
A. $3,969 B. $4,287 C. $4,624 D. $6,299