Your parents plan to spend $20,000 on a car for you upon graduation from college. If you will graduate in four years and your parents can earn 4.125% annually on their investment, how much money must they set aside today for your car?
Your parents plan to spend $20,000 on a car for you upon graduation from college. If you will graduate in four years and your parents can earn 4.125% annually on their investment, how much money must they set aside today for your car?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.18E
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Your parents plan to spend $20,000 on a car for you upon graduation from college. If you will graduate in four years and your parents can earn 4.125% annually on their investment, how much money must they set aside today for your car?
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