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How much money must you add to the account today? Now suppose you can pay for the car over some time. In particular, you will
How much money must you add to the account today? Now suppose you can pay for the car over some time. In particular, you will make a down payment of $6,000 at the time you get the car (three years from now) and make additional payments of $6, 500 at the end of each of following two years. With this new offer, much money do you need to put into your account today? d. Draw the timeline of cash flows starting today. e. Calculate how much money you need in the account today in order to afford the three auto payments. f. How much money must you add to the account today? How much money must you add to the account today? Now suppose you can pay for the car over some time. In particular, you will make a down payment of $6,000 at the time you get the car (three years from now) and make additional payments of $6, 500 at the end of each of following two years. With this new offer, much money do you need to put into your account today? d. Draw the timeline of cash flows starting today. e. Calculate how much money you need in the account today in order to afford the three auto payments. f. How much money must you add to the account today
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