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3. You intend to buy a used BMW 330 Sports Coupe that costs $20,000. You know you will be receiving $6,000 next week from a

3. You intend to buy a used BMW 330 Sports Coupe that costs $20,000. You know you will be receiving $6,000 next week from a relative. If you deposit that money into an account paying 10% interest, how long will it take you reach your goal?

a. Does the price of the BMW represent a future or a present value? How do you know?

b. To solve this problem, you will need to calculate which of the TVM components?

c. If you were to solve this problem using your financial calculator, what would you enter as your PV?

d. If you were to solve this problem using your financial calculator, what would you enter as your FV?

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