Mary would like to save $10,000 at the end of 5 years for a future down payment
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Question:
- Mary would like to save $10,000 at the end of 5 years for a future down payment on a car.
- How much should she deposit at the end of each month in a savings account that pays 1.2%/a, compounded monthly, to meet her goal?
- If you currently have a part-time job, consider your hourly wage. If you do not have a job, use the minimum hourly wage in your jurisdiction. How many hours each month would you have to work, just to make those payments? Write a brief reflection on the advantages and disadvantages to long-term saving for a purchase, compared to borrowing a large sum of money and paying it off over time. Note that interest rates for savings accounts are always lower than interest rates for borrowing.
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0134730363
8th edition
Authors: Arthur J. Keown
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