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astute investor; all your money earns at 20% per vear. If you have already saved $9500, the amount vour rich aunt has to give you 2 years from now as a graduation present) in order for you to have he total amount of $38,000, is closest to: a. <$7500

astute investor; all your money earns at 20% per vear. If you have already saved $9500, the amount vour rich aunt has to give you 2 years from now as a graduation present) in order for you to have he total amount of $38,000, is closest to: a. <$7500

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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### Financial Planning Scenario You plan to pay $38,000 cash for the new truck you want to buy 5 years from now. You are a very astute investor; all your money earns at 20% per year. If you have already saved $9500, the amount your rich aunt has to give you 2 years from now (as a graduation present) in order for you to have the total amount of $38,000, is closest to: a. <$7500 b. $7654 c. $8310 d. $9880 In this scenario, you need to determine the present value of your savings and the future value of the gift from your aunt to ensure the total reaches your goal.
Transcribed Image Text:### Financial Planning Scenario You plan to pay $38,000 cash for the new truck you want to buy 5 years from now. You are a very astute investor; all your money earns at 20% per year. If you have already saved $9500, the amount your rich aunt has to give you 2 years from now (as a graduation present) in order for you to have the total amount of $38,000, is closest to: a. <$7500 b. $7654 c. $8310 d. $9880 In this scenario, you need to determine the present value of your savings and the future value of the gift from your aunt to ensure the total reaches your goal.
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