(Appendix 8A)(Ignore Income Taxes in This Problem

Multiple Choice

(Appendix 8A) (Ignore income taxes in this problem. ) 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