How much should andrew deposit in the bank now

Assignment Help Financial Accounting

Reference no: EM131295211

Andrew has purchased a new car. He wishes to set aside enough money in a bank account to pay the maintenance for the first 5 years. It has been estimated that the maintenance cost of a car is as follows:

Assume the maintenance costs occur at the end of each year and that the bank pays 5% interest. How much should Andrew deposit in the bank now?

Year 1 2 3 4 5

Maintenance Cost $ 130 150 170 190 210

Reference no: EM131295211

Questions Cloud

Prepare a spreadsheet for the given data : INSY 2299 - Information Systems.Prepare a spreadsheet for the given data.for this assignment, you will be provided with a spreadsheet that is very similar to the one you produced in Excel Assignment #2. It will contain data for a fictional company..

Formulate mesh current equations for the circuit : Formulate mesh-current equations for the circuit in Figure. Arrange the results in matrix form Ax = b.- Solve for iA and iB.

Abandoned or brought under control : Why does it often take a long time before troubled projects are abandoned or brought under control?

Advantages and disadvantages of using this type of delivery : Discuss two forms of healthcare delivery. What are the advantages and disadvantages of using this type of delivery? How are they financed?

How much should andrew deposit in the bank now : Andrew has purchased a new car. He wishes to set aside enough money in a bank account to pay the maintenance for the first 5 years. It has been estimated that the maintenance cost of a car is as follows: Assume the maintenance costs occur at the end ..

What would be your long-term average of future stocks return : If the "new normal" for GDP growth is 2% (or less) what would be your long-term average of future stocks returns? Why?

Verify that the sum of all power in the circuit is zero : Consider the circuit of Figure again. Use Multisim to find all of the voltages, currents, and power used or provided. Verify that the sum of all power in the circuit is zero.

What is the theory of social responsibilities : What is the theory of social responsibilities that explains how Americans thought about social responsibility over the years?

What is your summary of this companys financial condition : What is your summary of this company's financial condition? What major factors should the company be aware of as it evaluates possible investment projects in the future?

User Account

All Pages