4. Grant has made a plan to deposit $12,000 today into a bank account paying a steady rate of 3.75%. At the end of each of the next three years, he will add $6,000 to this account. Finally, he will let the account sit for five years after the last deposit, so he can buy a sports car on his 65th birthday. How much will Grant be able to spend on his sports car?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 14P
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4. Grant has made a plan to deposit $12,000 today into a bank account paying a steady rate of 3.75%. At
the end of each of the next three years, he will add $6,000 to this account. Finally, he will let the
account sit for five years after the last deposit, so he can buy a sports car on his 65th birthday. How
much will Grant be able to spend on his sports car?
Transcribed Image Text:4. Grant has made a plan to deposit $12,000 today into a bank account paying a steady rate of 3.75%. At the end of each of the next three years, he will add $6,000 to this account. Finally, he will let the account sit for five years after the last deposit, so he can buy a sports car on his 65th birthday. How much will Grant be able to spend on his sports car?
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