Solution-Will have enough money at the end of fifth year

Will have enough money at the end of fifth year

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Reference no: EM132952841

Problem 1: You want to buy a new car in five years. You want to have saved $30,000 by then. You can invest $4,000 at the end of each of the next five years at an interest rate of 8% compounded annually. Will you have enough money at the end of the fifth year?

Multiple Choice

Option 1: Yes. You have $5,600 more than you need.
Option 2: Yes. You have $6,532 more than you need.
Option 3: No. You are short $5,600.
Option 4: No. You are short $6,532.
Option 5: None of the answers is correct.

Reference no: EM132952841

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Will have enough money at the end of fifth year

Reference no: EM132952841

Reference no: EM132952841

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