The Jimenez's are planning a family vacation to Dubai. Three years ago they save $2000, last year they save $2,000. this year they will save $2000, and they will have another $2000 next year - a total of 4 deposits of $2000. If they earn 3.4% in their account, how much will they have two years from now when they plan to take their trip?

The Jimenez's are planning a family vacation to Dubai. Three years ago they save $2000, last year they save $2,000. this year they will save $2000, and they will have another $2000 next year - a total of 4 deposits of $2000. If they earn 3.4% in their account, how much will they have two years from now when they plan to take their trip?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Please provide working to the solution for the question below: You have just graduated and need money to buy a new car. Your rich Uncle Chan will lend you the money so long as you agree to him back within four years, and you offer to pay him the rate of interest that he would otherwise get by putting his money in a savings account. Based on your earnings and living expenses, you think you will be able to pay him RM5,000 in one year, and then RM8,000 each year for the next three years. If Uncle Chan would otherwise earn 6% per year on his savings, how much can you borrow from him?
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