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financial management (time value for money) 1) Rahman wanted to buy a Toyota Corolla. The car cost RM85,000 today, and thinking of buying the car
financial management (time value for money)
1) Rahman wanted to buy a Toyota Corolla. The car cost RM85,000 today, and thinking of buying the car once he has enough money. However, the price shows that it will increase by 6% per year. a. How much the price of the car will be in 5 years. b. If he were to save now at a prevailing interest rate of 10%, how much would he have to save every year to buy the car for the next 5 years? c. Do a) and b) again if the value of the car shrank by 5% per year Step by Step Solution
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