Alvin’s Uncle Arnold gave him $16,000 from selling the old family farm. Alvin wants to start college and have $12,000 available to buy a used car when he graduates in 4 years. Alvin wants to buy a new computer, software, and peripherals now, and he earns 3% in his savings account. How much can he spend on the computer now and still have enough to grow to the $12,000 he needs when he graduates?

Answer rating: 100% (QA)

To have 12000 4 years later we need to find the present value o... View the full answer