You would like to start saving for an overseas holiday. You can afford to save $1,000...
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You would like to start saving for an overseas holiday. You can afford to save $1,000 per year from your casual work (with the first amount to be invested in exactly 1 year). You plan to go on the holiday in exactly 4 years. The interest rate on your savings account is expected to be 4.8% per year (compounded yearly). Calculate how much you can expect to spend on your holiday in 4 years (to the nearest dollar). Please do not include dollar signs or commas in your answer. Answer: You would like to start saving for an overseas holiday. You can afford to save $1,000 per year from your casual work (with the first amount to be invested in exactly 1 year). You plan to go on the holiday in exactly 4 years. The interest rate on your savings account is expected to be 4.8% per year (compounded yearly). Calculate how much you can expect to spend on your holiday in 4 years (to the nearest dollar). Please do not include dollar signs or commas in your answer. Answer:
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Answer rating: 100% (QA)
SOLUTION To calculate the future value of the savings we can use the formula f... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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