Posted: September 22nd, 2016

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)?

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