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Dusty would like to buy a new car in six years. He currently has $8,500 saved. Hes considering buying a car for around $15,000 but
Dusty would like to buy a new car in six years. He currently has $8,500 saved. Hes considering buying a car for around $15,000 but would like to add a Turbo engine to increase the cars performance. This would increase the price of the car to $19,000. Required: 1-a. If Dusty can earn 9% interest, compounded annually, how much will he have in six years? (FV of $1, PV of $1, FVA of $1, and PVA of $1) 1-b. Will he be able to get a car with a Turbo engine in six years?
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