You intend to buy a car in 5 years, and you expect the price of the car

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You intend to buy a car in 5 years, and you expect the price of the car at that time to be $15000. How much to you need to deposit today into a bank account paying 10% per year if interest is calculated:

a. annually?

b. semi-annually (twice a year)?

c. quarterly (4 times a year)?

Related Book For answer-question

Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Sep 20, 2023 01:03 AM

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You intend to buy a car in 5 years, and you expect the price of the car

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To calculate the amount you need to deposit today for each scenario annually semiannually and ... View the full answer

Principles of Finance

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