A man decided to save to buy a new $30,000 car to take care of his family in his hometown.He has $12,000 today that can be invested at UBA bank . A. If the bank pays 6% interest compounded annually,how long would it take him before he has enough money to buy the car ?

A man decided to save to buy a new $30,000 car to take care of his family in his hometown.He has $12,000 today that can be invested at UBA bank . A. If the bank pays 6% interest compounded annually,how long would it take him before he has enough money to buy the car ?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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Question

A man decided to save to buy a new $30,000 car to take care of his family in his hometown.He has $12,000 today that can be invested at UBA bank .

A. If the bank pays 6% interest compounded annually,how long would it take him before he has enough money to buy the car ?

B.if he wants to visit his family in 4 years time at what annual rate should he invest the money to have enough to buy the car ?

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