Jenny is planning to buy a car 5 years from now at a price of $35,000 with cash. She decides to invest a single deposit right now to fund for the purchase. Calculate the amount of deposit if the nominal interest rate during the first three years is 12% per annum compounded monthly and thereafter the nominal interest rate is 7% per annum compounded annually,

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Heres how to calculate the amount of deposit Jenny needs to make Step 1 Calculate the future value of the car in 5 years Since the inflation rate isnt ... View the full answer