We have offered to contribute $6,200 at the time of your purchase. The car plan to buy will cost $36,000 and have chosen to save into an account with a high monthly interest rate of 1.1%. How much needs be to saved each month for the next 3 years (end of period) to reach the goal of $36,000 and pay cash for the car (that includes your company's one-time contribution of $6,200)?
We have offered to contribute $6,200 at the time of your purchase. The car plan to buy will cost $36,000 and have chosen to save into an account with a high monthly interest rate of 1.1%. How much needs be to saved each month for the next 3 years (end of period) to reach the goal of $36,000 and pay cash for the car (that includes your company's one-time contribution of $6,200)?
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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We have offered to contribute $6,200 at the time of your purchase. The car plan to buy will cost $36,000 and have chosen to save into an account with a high monthly interest rate of 1.1%. How much needs be to saved each month for the next 3 years (end of period) to reach the goal of $36,000 and pay cash for the car (that includes your company's one-time contribution of $6,200)?
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Annuity means a series of finite number of payments which are the same in size and occur in the same intervals of time. A person gets an accumulated amount at maturity which includes all the deposited payments and interest.
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