wants to buy a car when sne graduates from Oniversity o years from now. She belleve that she W buy the car. Click here to view the factor table. (a) Calculate how much money Michelle must put into her savings account today to have $30,700 in 6 years, assumi 14% compounded annually. (For calculation purposes, use 4 decimal places as displayed in the factor table pr final answer to 0 decimal place, e.g. 58,975.) Amount (b) Calculate how much money Michelle must put into her savings account today to have $30,700 in 6 years, assumi %24

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Michelle wants to buy a car when she graduates from Central University 6 years from now. She believes that she will need $30,700 to
buy the car.
Click here to view the factor table.
(a) Calculate how much money Michelle must put into her savings account today to have $30,700 in 6 years, assuming she can earn
14% compounded annually. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round
final answer to 0 decimal place, e.g. 58,975.)
Amount
$
(b) Calculate how much money Michelle must put into her savings account today to have $30,700 in 6 years, assuming she can earn
14% compounded semiannually. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and
round final answer to 0 decimal place, e.g. 58,975.)
Amount
$
%24
Transcribed Image Text:Michelle wants to buy a car when she graduates from Central University 6 years from now. She believes that she will need $30,700 to buy the car. Click here to view the factor table. (a) Calculate how much money Michelle must put into her savings account today to have $30,700 in 6 years, assuming she can earn 14% compounded annually. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,975.) Amount $ (b) Calculate how much money Michelle must put into her savings account today to have $30,700 in 6 years, assuming she can earn 14% compounded semiannually. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,975.) Amount $ %24
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