Stephen Would Like to Send His Parents on a Cruise

Multiple Choice

Stephen would like to send his parents on a cruise for their 25th wedding anniversary. He expects the cruise will cost $15,000 and he has 5 years to accumulate this money. How much must Stephen deposit annually in an account paying 10 percent interest in order to have enough money to send his parents on the cruise?

A) $1,862
B) $2,457
C) $3,000
D) $2,234