James Just Received an $8,000 Inheritance Check from the Estate

Multiple Choice

James just received an $8,000 inheritance check from the estate of his deceased rich uncle. James wants to set aside enough money to pay for a trip in five years. If the trip is expected to cost $5,000, how much of the $8,000 must James deposit now if the rate of return is 12% per year in order to have the $5,000 in five years?

A) $2,535
B) $2,835
C) $2,000
D) $5,000