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Dwight, who is 18 years old, wants to buy a new car when he graduates in 4 years. The car he wants costs $25,000 today
Dwight, who is 18 years old, wants to buy a new car when he graduates in 4 years. The car he wants costs $25,000 today and Dwight anticipates an inflation rate of 3.5% annually. Dwight wants to make one deposit today of his savings into an investment that offers 7.5% annually. How much does Dwight have to deposit today to have enough to buy this car 4 years from now?
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