#8

(Compounding using a calculator) Bart Simpson, age 10, wants to be able to buy a really cool new car when he turns 17. His really cool car costs $14,000 today, and its cost is expected to increase 3 percent annually. Bart wants to make one deposit today (he can sell his mint-condition original Nuclear Boy comic book) into an account paying 7 percent annually in order to buy his car in 7 years. How much will Bart's car cost, and how much does Bart have to save today in order to buy this car at age 17? ... a. How much will Bart's car cost after 7 years? (Round to the nearest cent.) b. How much does Bart have to save today in order to buy this car at age 17? (Round to the nearest cent.)