Recently, you bought a new 2022 Cadillac Escalade listed for $119,000, where you put down $5000 cash. Your loan is for 48 months with an interest rate of 3.9%.

However, instead of financing the car today, imagine that you are able to get this same deal 8 years in the future. You want to have the money that you need so that you can just pay cash.

• Using the Amount Financed ($114,000) as your Future Value, how much would you need to invest today at your bank in order to reach that future value? Use the best savings account that you can find. Show your work.