Question
Can someone help me with this question. In 2009 you started saving for a $8k bike that you planned to buy in 2017. You make
Can someone help me with this question.
In 2009 you started saving for a $8k bike that you planned to buy in 2017. You make your first deposit on that day. Your plan was to make a sequence of 6 consecutive equal deposits to pay for the bike. Your dad told you that if you make your first three payments, then he would contribute $600 on top of your third payment. Figure out the value of the deposits such that you reach your final goal of $8k in 2017 so you can afford to buy the bike. The interest rate over the entire period is 8%. Hint: Mark the cash flow diagram using the years to better keep track. The equal sum amount is within $10 of which of the following?
743
763
783
803
None of the above
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