Time value personal finance problem

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Reference no: EM131461963

Time value Personal Finance Problem

As part of your financial? planning, you wish to purchase a new car exactly 8 years from today. The car you wish to purchase costs?$18,000 ?today, and your research indicates that its price will increase by 3?% to 6?%

per year over the next 8years.

a. Estimate the price of the car at the end of 8 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 6years after that.

a. The price of the car at the end of 8?years, if inflation is 3?% per? year, is $ ?(Round to the nearest? cent.)

Reference no: EM131461963

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