You want to purchase a new car in 4 years and expect the car to cost $55,000. Your bank offers a plan with a guaranteed APR of 6.5% if you make regular monthly deposits. How much should you deposit each month to end up with $55,000 in 4 years?
You want to purchase a new car in 4 years and expect the car to cost $55,000. Your bank offers a plan with a guaranteed APR of 6.5% if you make regular monthly deposits. How much should you deposit each month to end up with $55,000 in 4 years?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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![You want to purchase a new car in 4 years and expect the car to cost $55,000. Your bank offers a plan with a quaranteed APR of 6.5% if you make regular monthly deposits. How much should you deposit each
month to end up with $55,000 in 4 years?
You should invest $ each month.
(Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as needed.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7de42a67-181a-4f2f-af21-0f59713bb114%2Fa66e12a3-231d-40c2-ac2d-1bb37e95b62d%2Fd7b3zsd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You want to purchase a new car in 4 years and expect the car to cost $55,000. Your bank offers a plan with a quaranteed APR of 6.5% if you make regular monthly deposits. How much should you deposit each
month to end up with $55,000 in 4 years?
You should invest $ each month.
(Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as needed.)
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