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You decide to save for your dream vacation to Europe (London, Paris, and Rome). You want to be able to travel in 8 years. If you believe your trip will cost $9,963 and you can earn 5.4 percent annual interest on your savings, how much must you deposit today so you can afford your trip in 8 years

Respuesta :

Answer:

$6,541.32

Explanation:

the formula that would be used to solve this question is :

The formula for calculating present value:

FV x (1+r)^-n = P  

FV = Future value = $9,963  

P = Present value  

R = interest rate = 5.4%

N = number of years = 8

$9,963 x (1.054)^-8 = $6,541.32

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