Answered: How many years will it be before you…

How many years will it be before you have enough to buy the car without borrowing any money? (Use Goal Seek to determine the time taken.)

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

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Question

. The price of a car you want is $35,000 today. Its price is expected to increase by $1000 each year.
You now have $21,000 in an investment account, which is earning 7% per year. How many years
will it be before you have enough to buy the car without borrowing any money? (Use Goal Seek to
determine the time taken.)

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Eng'g economy: Mark has just retired and plans to consume $8,640 from the retirement account every year for the next 16 years starting one year from today, meeting the rest of the expenses from other resources. If the annual interest rate is 9.6%, how much does Mark have in the retirement account today?
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The following graph shows the decreasing value of a car over time. (a) Write a sentence that explains the meaning of the ordered pair (4, 9100). After? years the car has a value of $? (b) Find the average rate of change (in dollars per year) of car value for the given points. $? per year.
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