Question

its to start college and have 1. Alvin's uncle Arnold gave him $16.000 from selling the old family farm. Alvin wants to start $12,000 available to buy a used car when he graduates in 4 years. Alvin and he earns 4% in his savings account. How much can he spend on the car when he graduates in 4 years. Alvin wants to buy a new computer s savings account. How much can be spend on the computer now and still have enou to grow to the $12,000 he needs when he graduates? (5 Points) A- #12000 = 30% n=4

Answer 1

Answer:

1) Paesent value of 12000 to be needed in tow years = 12000/(1+3/14 = 10661.84 How much can he spend on a motorcycle now = Money received - she sent value of 12000 to be needed in fous years -) 16000-10661.84 =) 5338.16

2) The interest for 25 years at 5% I - PTR - P(25%) = 1.258 100 100 The income he has to pay after 10 years P+I = P+1.25P = 2.25P Hence, 2:25P = 30000 P-13333.34 $ 13,333.34 $ - 25 years ? - 10 years (3,333.34 $110 25 >) 5,333.45 Hence 5333.4deposited annually for 25 years.