You want to buy a new car in five years. You want to have saved $30,000 by then. You can invest $4,000 at the end of each of the next five years at an interest rate of 8% compounded annually. Will you have enough money at the end of the fifth year?

Use appendixTable 1,Table 2,Table 3andTable 4.

Multiple Choice

• Yes. You have $5,600 more than you need.
• Yes. You have $6,532 more than you need.
• No. You are short $5,600.
• No. You are short $6,532.
• None of the answers is correct.