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Two-year commitment to the peace corp

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Andy would like to buy a new car but must complete two-year commitment to the Peace Corp before he will drive the new car. The current price of the car Andy wants to buy is $22,000, and the dealer expects the price of a similar new car to be $24,000 in two years. If Andy can earn an annual interest rate of 3% on his money, should he buy the car now or wait for two years? Why? Note: Storage costs if Andy purchases the car are $0. Please limit your considerations to the factors offered in the answer choices.

Reference no: EM132607364

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