You are planning on buying a new vehicle in 5 years after you receive your PhD. You plan on spending $35,600 for the car. Even though you are still in school. You think you can put some money aside each year because you work as a lab assistant and have a well-paying summer job. Your EGM 320 instructor said you could consider an interest rate of 6.5% each year as the market interest rate. How much do you have to set aside each year to have the amount of cash to pay for the car?
You are planning on buying a new vehicle in 5 years after you receive your PhD. You plan on spending $35,600 for the car. Even though you are still in school. You think you can put some money aside each year because you work as a lab assistant and have a well-paying summer job. Your EGM 320 instructor said you could consider an interest rate of 6.5% each year as the market interest rate. How much do you have to set aside each year to have the amount of cash to pay for the car?
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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You are planning on buying a new vehicle in 5 years after you receive your PhD. You plan on
spending $35,600 for the car. Even though you are still in school. You think you can put some money
aside each year because you work as a lab assistant and have a well-paying summer job. Your EGM
320 instructor said you could consider an interest rate of 6.5% each year as the market interest rate.
How much do you have to set aside each year to have the amount of cash to pay for the car?
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