Determine how much would remain at the end of the six years

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a. The cost of a new automobile is $10,000. If the interest rate is 5%, how much would you have to set aside now to provide this sum in five years?

b. You have to pay $12,000 a year in school fees at the end of the year the next six years. If the interest rate is 8%, how much do you need to set aside today to cover these bills? What is the annuity factor? What is the set aside amount?

c. You have invested $60,476 at 8%. After paying the above school fees, how much would remain at the end of the six years?

Reference no: EM13334481

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