Time value Personal Finance ProblemAs part of your financial planning, you wish to purchase a new car exactly 8 years from today. The car you wish to purchase costs$18,000today, and your research indicates that its price will increase by 3% to 6%

per year over the next 8years.

a.Estimate the price of the car at the end of 8years if inflation is (1) 3% per year and (2) 6%

per year.

b.How much more expensive will the car be if the rate of inflation is 6% rather than 3%?

c.Estimate the price of the car if inflation is 3% for the next 2years and 6% for 6years after that.

a. The price of the car at the end of 8years, if inflation is 3% per year, is

$

(Round to the nearest cent.)