You Want to Have $35,000 in Cash to Buy a Car

Multiple Choice

You want to have $35,000 in cash to buy a car 4 years from today. You expect to earn 8 percent, compounded annually, on your savings. How much do you need to deposit today if this is the only money you save for this purpose?

A) $23,618.92
B) $24,511.68
C) $25,726.04
D) $26,013.01
E) $26,311.15