You have been offered some business consulting work which will pay you $10,000 per year for the next two years, after expenses. You regard this as extra money which can be saved to buy a new car for business purposes in three years. If you deposit this amount into an account that pays 3% interest semiannually, how much will you have available to purchase that car?

You have been offered some business consulting work which will pay you $10,000 per year for the next two years, after expenses. You regard this as extra money which can be saved to buy a new car for business purposes in three years. If you deposit this amount into an account that pays 3% interest semiannually, how much will you have available to purchase that car?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 5CE

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