You are saving money to buy a car you see $340 per month waring one month...

Question

Question

Answer 1

Answer #1

Option C is correct

P = monthly savings = $340

r = monthly interest rate = 6%/12 = 0.5%

n = 4*12 = 48 months

Future value = P*[(1+r)^n - 1] / r

= $340 * [(1+0.5%)^48 - 1] / 0.5%

= $340 * 0.27048916 / 0.005

= $ 18,393.2629

Therefore, Amount can be spend after 4 years is $18,393

Answer 2

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