3.3.2 Garrick decides he will need $25000 to buy a new car in 3 years. He found an investment account that has been paying an average of 1.8% per quarter. What does his deposit need to be each quarter? What monthly payment will that mean he needs to deposit? How much interest will he earn in the 3 years?
3.3.2 Garrick decides he will need $25000 to buy a new car in 3 years. He found an investment account that has been paying an average of 1.8% per quarter. What does his deposit need to be each quarter? What monthly payment will that mean he needs to deposit? How much interest will he earn in the 3 years?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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For solving above problem we need to found out future value factor and then find out quarterly deposits required.
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