Your parents agree to pay half of the purchase price of a new car when you graduate from college. You will graduate and buy the car two years from now. You have $13,000 to invest today and can earn 6% on invested funds. If your parents match the amount of money you have in two years, what is the maximum you can spend on the new car?
Your parents agree to pay half of the purchase price of a new car when you graduate from college. You will graduate and buy the car two years from now. You have $13,000 to invest today and can earn 6% on invested funds. If your parents match the amount of money you have in two years, what is the maximum you can spend on the new car?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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Your parents agree to pay half of the purchase price of a new car when you graduate from college. You will graduate and buy the car two years from now. You have $13,000 to invest today and can earn 6% on invested funds. If your parents match the amount of money you have in two years, what is the maximum you can spend on the new car?
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