Question: 5. A couple needs $32,000 for a car. To save up to buy the car for the aforementioned price, they decide to invest 2,000 at
5. A couple needs $32,000 for a car. To save up to buy the car for the aforementioned price, they decide to invest 2,000 at the end of every quarter into a bank account that accrues 10% interest compounded quarterly. a. [5 points] Is this a situation in which we are dealing with the present value of an annuity or the future value of an annuity? Why? b. [5 points ]Does this situation correspond to an annuity due or an ordinary annuity? Why? c. [8 points] Determine how long it will take for the couple to save up to buy the car. 5. A couple needs $32,000 for a car. To save up to buy the car for the aforementioned price, they decide to invest 2,000 at the end of every quarter into a bank account that accrues 10% interest compounded quarterly. a. [5 points] Is this a situation in which we are dealing with the present value of an annuity or the future value of an annuity? Why? b. [5 points ]Does this situation correspond to an annuity due or an ordinary annuity? Why? c. [8 points] Determine how long it will take for the couple to save up to buy the car
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