How much money should jessica invest today for her tour

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Reference no: EM131959873

Jessica is 25 years old and plans to go on a three-year world tour three years from now.

She wants to make a lump-sum today deposit and earn interest so that she can withdraw $12,500 each year for the three years she on her trip.

She expects to earn an annual rate of return of 5% from her investment, and she will make withdrawals at the end of each of the three years she'll be traveling

How much money should Jessica invest today for her world tour?

Reference no: EM131959873

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