You plan to go to Europe to visit friends in four years. The trip is expected...
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You plan to go to Europe to visit friends in four years. The trip is expected to cost a total of $9,000 at that time. Your parents have deposited $4,000 for you in a Certificate of Deposit paying 6% interest annually, maturing four years from now. Your grandmother has agreed to pay for all remaining expenses. If you are going to put your grandmother's gift in an investment earning 10% over the next four years, how much must she deposit today, so you can visit your friends four years from today? You plan to go to Europe to visit friends in four years. The trip is expected to cost a total of $9,000 at that time. Your parents have deposited $4,000 for you in a Certificate of Deposit paying 6% interest annually, maturing four years from now. Your grandmother has agreed to pay for all remaining expenses. If you are going to put your grandmother's gift in an investment earning 10% over the next four years, how much must she deposit today, so you can visit your friends four years from today?
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