Question: You estimate that a new car will cost $ 4 5 , 0 0 0 in five years. You would like to save a lump

You estimate that a new car will cost $45,000 in five years. You would like to save a lump-sum amount today, reinvesting any returns, to purchase the car in five years. How much must you save today to have $45,000 in five years if you are able to earn nine percent each year?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Please show ALL work. Thank you! 1. A firm has shareholders' equity of $200,000. The firm owes a total of $125,000 of which 30 percent is payable within the next year. The firm net fixed assets of...

Q:

Exam 1 Business Math Q1. The number 49,842 rounded to the nearest thousand is: a. 50,000 b. 49,000 c. 49,900 d. 49,800 Q2. The number 70624020 should be written: a. 70,624,020.0 b. 7,062,402,0 c....

Q:

Assignment 1 Assignment 1 is due after Lesson 5 and is worth 10% of your final mark. The plan should be approximately 8 to 10 pages in length, including a balance sheet and an income statement. The...

Q:

1. Meet the Runkles: Harry and Marcia. The Runkles have two boys, Brian and Terry. Brian turns 11 years old in 2020 and starts secondary school in (2021) while Terry is a year younger and starts the...

Q:

Write the inputs for every problem. Answers do not need to be word-processed. 1. You invest $12,000 today at 9 percent per year. How much will you have after 15 years? 2. What is the current value of...

Q:

Write the inputs for every problem. Answers do not need to be word-processed. 1. You invest $12,000 today at 9 percent per year. How much will you have after 15 years? 2. What is the current value of...

Q:

Write the inputs for every problem. Answers do not need to be word-processed. 1. You invest $12,000 today at 9 percent per year. How much will you have after 15 years? 2. What is the current value of...

Q:

Case 6-5 to the new youth-oriented Scion XB-glide along on a single production line in any of a half-dozen colors. Toyota Overhead, car doors flow by on a conveyor belt that descends to floor level...

Q:

1. Identify and discuss Toyotas distinctive capabilities, and describe how Toyota is using cross-functional design teams(Point out relevant sentence in the text) Case 6-5 to the new youth-oriented...

Q:

2. Critically evaluate Toyotas global marketing strategy.(Point out relevant sentence in the text) Case 6-5 to the new youth-oriented Scion XB-glide along on a single production line in any of a...

Q:

Konstantin pays $23,850.28 for a 19-year, $20,000.00 face value bond. The bond yield is j(1) = 4.875%. Find the coupon rate r(2) for the bond.

Q:

We use the Selfridge-Conway Method if Tara is the Trimmer and Charlotte is the Chooser. Dakota Divides as above. Tara identifies Part B as the largest followed by Part A. These two parts are not...

Q:

E 6 - 2 0 Analyzing Multiproduct CVP LO 6 - 6 Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: \ table [ [ , \ table [ [ Percentage of ] , [ Unit...

Q:

The management of the direct resources that are involved in the production system of a business organization is known as a . procurement management. b . operations management. c . logistics...

Q:

Indicate how each of the methodologies below might be used to evaluate each individual tactic.

Q:

What is the per-capita cost?

Q:

Timeline for progress report