Question
A young graduate is planning on saving $708.00 each quarter for four years in an investment account paying 14.72% interest that is compounded quarterly. His
A young graduate is planning on saving $708.00 each quarter for four years in an investment account paying 14.72% interest that is compounded quarterly. His first deposit will be made at the end of the next quarter, so this is a regular annuity. The balance from this investment account will be used as a down payment on a new car. Also, in 4 years, he also plans on being able to afford a 60-month car loan with $368.00 monthly payments at a 11.52% APR interest rate. Given the graduate's plans, how expensive of a "dream car" will he expect to be able to purchase in four years?
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