In 3 years from now you want to buy a new car. You expect the price of

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In 3 years from now you want to buy a new car. You expect the price of the car of your dreams to be $55,000 (price
in 3 years).

How big are your equal monthly contributions to your savings account if you want to have enough
money saved to buy that car in 3 years?

Assume you start saving in two months from today and make your last
contribution in 3 years (i.e., monthly payments at t = 2, 3, 4, ..., 36).

Assume an APR of 6%, monthly compounded.

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: Mar 13, 2024 01:40 AM

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In 3 years from now you want to buy a new car. You expect the price of

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Fundamentals of Financial Management

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