Question: Antonette needs $ 2 0 , 0 0 0 as a down payment for a house five years from now. She earns 4 percent on

Antonette needs $

20, 000

as a down payment for a house five years from now. She earns

4

percent on her savings. Antonette can either deposit one lump sum today for this purpose or she can wait a year and deposit a lump sum. How much additional money must Antonette deposit if she waits for one year rather than making the deposit Tip

=

It is the difference between two present values

Antonette needs $20,000 as a down payment for a house five

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