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John wants to buy a car in 5 years. The cost of the car is $30,000 at that time. How much must John save each year in a saving account earning 4% per year to accumulate $30,000 in five years?

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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John wants to buy a car in 5 years. The cost of the car is $30,000 at that time. How much must John save each year in a saving account earning 4% per year to accumulate $30,000 in five years?

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