You just graduated and need money to buy a new car. Your rich Uncle Henry will lend you the loan as long as you agree to repay it within four years and offer to pay him the interest rate he would normally earn by depositing his money into a savings account. Based on your earnings and living expenses, you think you can pay him $5,000 in one year and $8,000 each year for the next three years. Otherwise, if Uncle Henry earns 6% per year on his savings, how much money can you borrow from him?

Answer rating: 100% (QA)

To calculate how much money you can borrow from Uncle Henry you need to find the present value of th... View the full answer