"If you purchase a car from a certain dealership, you expect to have four free oil changes per year during the five years you keep the car. Each oil change would normally cost you $26.49. If you save your money in a mutual fund earning 3.94% per quarter, how much are the oil changes worth to you at the time you buy the car?" (A) 786.62 (B) 478.04 986.57 D) 138.72

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 6P
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"If you purchase a car from a certain dealership, you expect to have four free oil changes per year during the five years you keep the
car. Each oil change would normally cost you $26.49. If you save your money in a mutual fund earning 3.94% per quarter, how much
are the oil changes worth to you at the time you buy the car?"
A 786.62
B) 478.04
c) 986.57
138.72
E) 981.99
Transcribed Image Text:"If you purchase a car from a certain dealership, you expect to have four free oil changes per year during the five years you keep the car. Each oil change would normally cost you $26.49. If you save your money in a mutual fund earning 3.94% per quarter, how much are the oil changes worth to you at the time you buy the car?" A 786.62 B) 478.04 c) 986.57 138.72 E) 981.99
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