You plan to place a 40000 down payment on a lake cabin in, Ask an Expert

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You plan to place a $40,000 down payment on a lake cabin in Northern Minnesota in ten years. If you invest in a long-term CD earning an annual rate of 5.50%,

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Question: How much would you need to invest today to have enough for the down payment in ten years?

A) $28,264

B) $33,326

C) $23,417

D) $30,605

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