college

You want to travel to Europe to visit relatives when you graduate from college three years from now. The trip is expected to cost a total of $10,000 at that time. Your parents have deposited $5,000 for you in a CD paying 6% interest annually, maturing three years from now. Aunt Hilda has agreed to finance the balance. If are going to put Aunt Hilda’s gift in an investment earning 10% over the next three years, how much must she deposit now, so you can visit your relatives at the end of three years?