Determining the amount of investment

Reference no: EM1383462

In order to have money available for replacing their family vehicle, a couple plans to have $38,000 available 5 years from now by investing in a global mutual fund. If they plan to increase their savings by 5% each year, how much must they invest in the first year given that they expect to earn 4% per year on their investment?

Reference no: EM1383462

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