You would like to buy a new car 10 years from today. The car will cost you at that time JD30800. You want to save in order to buy the car. You expect to be able to deposit JD2,000 in the bank at EOY2. If you would like to make steady payments in your bank account starting from EOY4 through EOY10 with annual payment of 2300 JD. How much should you deposit in the bank now to be able to buy the car if the annual interest rate is 10%?

You would like to buy a new car 10 years from today. The car will cost you at that time JD30800. You want to save in order to buy the car. You expect to be able to deposit JD2,000 in the bank at EOY2. If you would like to make steady payments in your bank account starting from EOY4 through EOY10 with annual payment of 2300 JD. How much should you deposit in the bank now to be able to buy the car if the annual interest rate is 10%?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

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