Planning to accumulate money by investing

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Reference no: EM131026225

To buy his son a car for his sixteenth birthday, Mark is planning to accumulate money by investing his Christmas bonuses for the next five years in a security which pays a 10 percent annual rate of return. The car will cost $20,000 at the end of the fifth year and Mark's Christmas bonus is $3,000 a year. Will Mark accumulate enough money to buy the car?

Reference no: EM131026225

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