Irene just purchased a new sports car and wants to also set aside cash for future...

  

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Irene just purchased a new sports car and wants to also set aside cash for future maintenance expenses. • The car has a bumper-to-bumper warranty for the first five years. • Irene estimates that she will need approximately $2,000 ● ● per year in maintenance expenses for years 6-10, at which time she will sell the vehicle. How much money should Irene deposit into an account today, at 8% per year, so that she will have sufficient funds in that account to cover her projected maintenance expenses? Irene just purchased a new sports car and wants to also set aside cash for future maintenance expenses. • The car has a bumper-to-bumper warranty for the first five years. • Irene estimates that she will need approximately $2,000 ● ● per year in maintenance expenses for years 6-10, at which time she will sell the vehicle. How much money should Irene deposit into an account today, at 8% per year, so that she will have sufficient funds in that account to cover her projected maintenance expenses?

Answer rating: 100% (QA)

i Annual amount required for maintenance expense for year 6 to 10 2000 ii Amount r... View the full answer