Answered: Today, your dream car costs $50,100.…

Today, your dream car costs $50,100. You feel that the price of the car will increase at an annual rate 2.1 percent. If you plan to wait 5 years to buy the car, how much will it cost at that time?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 35P

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Today, your dream car costs $50,100. You feel that the price of the car will increase at an annual rate 2.1 percent. If you plan to wait 5 years to buy the car, how much will it cost at that time?

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