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Homer Has Been Saving to Buy a New Car in Five

Question 23

Multiple Choice

Homer has been saving to buy a new car in five years and expects that the car of his dreams will cost $35,000. If the interest rate is 8 percent per year, how much money should Homer have in his bank account today in order to have enough money to buy the car in 5 years?


A) $1,852.28
B) $22,055.94
C) $23,820.41
D) $25,726.04

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