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    Addtional amount needed

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    23. Marie needs $26,000 as a down payment for a house 4 years from now. She earns 5.25% on her savings. Marie can either deposit one lump sum to day for this purpose or she can wait a year and deposit a lump sum. How much additional money must Marie deposit if she waits for one year rather than making the deposit today?

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    Solution Preview

    The amount needed is $26,000 in 4 years. We need to calculate the present value today and the present value ...

    Solution Summary

    The solution explains how to calculate the addtional amount needed if the savings are done one year later instead of now.