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Linda wants to buy a car when she graduates from Central University 6 years from now. She believes that she will need $30,000 to buy
Linda wants to buy a car when she graduates from Central University 6 years from now. She believes that she will need $30,000 to buy the car. Click here to view the factor table. (a) Calculate how much money Linda must put into her savings account today to have $30,000 in 6 years, assuming she can earn 12% compounded annually. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,975.) (b) Calculate how much money Linda must put into her savings account today to have $30,000 in 6 years, assuming she can earn 12% compounded semiannually. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, e.g. 58,975.) Present value of $1 received in n periods. Present value of an annuity of $1 per period
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