Use the amount in the money market account for down payment

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Reference no: EM13953778

You intend to purchase a new car upon graduation in two years. It will have a cost of $29,381, including all extra features and sales tax. You just received a $3,000 pre-graduation gift from your rich uncle that you intend to deposit in a money market account that pays 6% interest, compunded monthly. If you use the amount in the money market account for a down payment, and take out an auto loan for the remainder, how much will you need to borrow? (Round to the nearest dollar.)

NOTE: Please use a financial calculator or formula. DO NOT USE AN EXCEL SHEET.

A) $25,880

B) $26,371

C) $39,371

D) $26,00

Reference no: EM13953778

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