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Ahmad , age 10, wants to be able to buy a really cool new car when he turns 1 6. His really cool car costs
Ahmad, age 10, wants to be able to buy a really cool new car when he turns 16. His really cool car costs $18,000 today, and its cost is expected to increase 4 percent annually. Ahmadwants to make one deposit today into an account paying 8percent annually in order to buy his car in 6 years. How much will Ahmads car cost, and how much does Ahmad have to save today in order to buy this car at age 16?
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