Asked by
Vivek Patel
on Nov 28, 2024
Verified
You want to buy a new sports car 3 years from now,and you plan to save $4,200 per year,beginning immediately.You will make three deposits in an account that pays 5.2% interest.Under these assumptions,how much will you have 3 years from today?
A) $13,956.42
B) $14,654.24
C) $15,386.95
D) $16,156.30
Deposits
Funds placed into an account at a financial institution, often earning interest.
Interest
The cost of borrowing money or the payment received for lending money, often expressed as a percentage of the principal.
Savings
Money that is set aside for future use rather than being spent immediately, often with the aim of achieving longer-term financial goals.
- Determine the present and future worth of lump sum investments for assorted interest rates and time spans.
- Analyze financial opportunities utilizing the present value concept under diverse compounding interval conditions.
Verified Answer
MC
Learning Objectives
- Determine the present and future worth of lump sum investments for assorted interest rates and time spans.
- Analyze financial opportunities utilizing the present value concept under diverse compounding interval conditions.