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You would like to buy a car but must complete a 4 year commitment to the Peace Corp before you can drive the new car.
You would like to buy a car but must complete a 4 year commitment to the Peace Corp before you can drive the new car. The current price of the car you want to buy is $19,000 and the dealer expects the price of a similar new car to be $23,750 in 4 years. If you can earn an annual interest rate of 10.00% on your money, should you buy the car now or wait until you return? Why? (Note that storage costs of the car are $0).
I have a financial calculator and also have a graphing calculator I can use to help answer this question. Thanks!
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