Fred wants to save enough money each year so that he can purchase a sports car in January 2011. Fred receives a large bonus from his employer every December 31. He anticipates that the car will cost $54,000 on January 1, 2011. Which of the following will Fred need to calculate how much he must save each December 31?
a. The anticipated interest rate and the present value of $1 table.
b. The anticipated interest rate and the future value of $1 table.
c. The anticipated interest rate and the present value table for annuities.
d. The anticipated interest rate and the future value table for annuities.
Answer: D
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