It is likely that airplane tickets will increase 5% in each of the next 4 years. The cost of a plane ticket at the end of the first year will be P10571. How much money would need to be placed in a savings account now to have money to pay for a trip at the end of each year for the next 4 years? Assume the savings account pays 2% annual interest. Round your answer to 2 decimal places.
It is likely that airplane tickets will increase 5% in each of the next 4 years. The cost of a plane ticket at the end of the first year will be P10571. How much money would need to be placed in a savings account now to have money to pay for a trip at the end of each year for the next 4 years? Assume the savings account pays 2% annual interest. Round your answer to 2 decimal places.
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section6.1: Why Save?
Problem 6R
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![It is likely that airplane tickets will increase 5% in each of the next 4 years. The cost of a plane ticket at the end of the first year will
be $10571. How much money would need to be placed in a savings account now to have money to pay for a trip at the end of each
year for the next 4 years? Assume the savings account pays 2% annual interest.
Round your answer to 2 decimal places.
Add your answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff27d3e5e-a302-43ab-a10e-4589721213f8%2Fbef7d340-927c-438c-bdb9-a5da2d60e471%2Fymw9fu7_processed.png&w=3840&q=75)
Transcribed Image Text:It is likely that airplane tickets will increase 5% in each of the next 4 years. The cost of a plane ticket at the end of the first year will
be $10571. How much money would need to be placed in a savings account now to have money to pay for a trip at the end of each
year for the next 4 years? Assume the savings account pays 2% annual interest.
Round your answer to 2 decimal places.
Add your answer
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