In Five Years Your Oldest Child Will Be in 8^th

Multiple Choice

In five years your oldest child will be in 8^th grade, at which point you and your family plan to vacation in Europe. You estimate that you will need $20,000 for the trip. How much do you need to set aside today if you can place your money in an investment vehicle earning an average of 4.50% per year?

A) $14,961
B) $15,073
C) $16,049
D) $16,058