How much must be deposited today in an account earning 6% annually to accumulate a 20% down

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How much must be deposited today in an account earning 6% annually to accumulate a 20% down payment to use in purchasing a car one year from now, assuming that the car's current price is $20,000, and inflation will be 4%?

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Personal Finance

ISBN: 978-1133595830

12th edition

Authors: Thomas Garman, Raymond Forgue

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Posted Date: Apr 11, 2023 02:07 AM

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How much must be deposited today in an account earning 6% annually to accumulate a 20% down

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To calculate how much must be deposited today we can use the future value formula for a single pay... View the full answer

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