Mr. Franklin wants to save for a new sports car that he expects will cost $38 000 four and one-half years from now. How much money will he have to save each year and deposit in a savings account that pays 6% per year, compounded annually, to buy the car in four and one-half years? B.)Suppose that Mr. Franklin makes a deposit at the beginning of each year, rather than at the end. How much money must be deposited each year?
Mr. Franklin wants to save for a new sports car that he expects will cost $38 000 four and one-half years from now. How much money will he have to save each year and deposit in a savings account that pays 6% per year, compounded annually, to buy the car in four and one-half years? B.)Suppose that Mr. Franklin makes a deposit at the beginning of each year, rather than at the end. How much money must be deposited each year?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 34P
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A.)Mr. Franklin wants to save for a new sports car that he expects will cost $38 000 four and one-half years from now. How much money will he have to save each year and deposit in a savings account that pays 6% per year, compounded annually, to buy the car in four and one-half years?
B.)Suppose that Mr. Franklin makes a deposit at the beginning of each year, rather than at the end. How much money must be deposited each year?
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