Estimate the price of the car at the end of given time

Assignment Help Finance Basics

Reference no: EM131786967

Question: As part of your financial planning, you wish to purchase a new car exactly 6years from today. The car you wish to purchase costs $17, 000 today, and your research indicates that its price will increase by 3% to 6% per year over the next 6years.

A. Estimate the price of the car at the end of 6 years if inflation is?

(1) 3% per year and?

(2) 6% per year.

B. How much more expensive will the car be if the rate of inflation is 6?% rather than 3?%?

C. Estimate the price of the car if inflation is 3% for the next 2years and 6% for 4years after that. A. The price of the car at the end of 6 years, if inflation is 3%

per? year, is $______ ?(Round to the nearest? cent.)

Reference no: EM131786967

Questions Cloud

Define the roles and responsibilities for each area of ics : Define the roles and responsibilities for each area of the ICS. Make sure that your answer is organized in a way that is easy to understand.

Identify a company you want to work for upon graduation : Company Report Requirements Identify a company you want to work for upon graduation.

External portfolio managers : A financial institution has hired three external portfolio managers: X, Y, and Z. All three managers have the same benchmark. A performance

What will be the total payment on october : The entire balance is payable at the note's maturity. What will be the total payment on October 31, 2008

Estimate the price of the car at the end of given time : As part of your financial planning, you wish to purchase a new car exactly 6years from today. The car you wish to purchase costs $17, 000 today.

Example of time context influenced : Also, give me an example of a time context influenced how you interpreted a piece of information.

What number of money orders needs to be sold per day : What number of money orders needs to be sold per day in order to breakeven per store? a) approx. 61 money orders b) approx. 2 money orders

Interstate compact appropriate regulatory mechanism : Is invasive species regulation in the Great Lakes through an interstate compact appropriate regulatory mechanism for regulating such regional natural resources

Write-off method to account for uncollectible accounts : If Wainwright uses the direct write-off method to account for uncollectible accounts

User Account

All Pages