A student wants to have $30,000 at graduation 4 years from now to buy a new car. His grandfather gave him $10,000 as a high school graduation present. How much must the student save each year if he deposites the $10,000 today and can earn 12% on both the $10,000 and his earnings? A) $ 3309 B) $ 4409 C) $ 5509 D) $ 6609
A student wants to have $30,000 at graduation 4 years from now to buy a new car. His grandfather gave him $10,000 as a high school graduation present. How much must the student save each year if he deposites the $10,000 today and can earn 12% on both the $10,000 and his earnings? A) $ 3309 B) $ 4409 C) $ 5509 D) $ 6609
Chapter13: Investment Fundamentals
Section: Chapter Questions
Problem 2DTM
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Question
A student wants to have $30,000 at graduation 4 years from now to buy a new car. His grandfather gave him $10,000 as a high school graduation present. How much must the student save each year if he deposites the $10,000 today and can earn 12% on both the $10,000 and his earnings?
A) $ 3309
B) $ 4409
C) $ 5509
D) $ 6609
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