Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Economics Methods And Techniques

Authors: Chandra Kant Singh

1st Edition

9353147018, 9789353147013

More Books

Students also viewed these Economics questions