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GenaCL600 [577]
3 years ago
10

Having just turned 16 years old, your friend has their mind set on buying a new car by the time they turn 20 years old. They can

afford to save $440 per month. They place the money into an annuity that pays 5.5% per year, compounded monthly. How much will they have to spend on a car after 4 years?
Mathematics
1 answer:
murzikaleks [220]3 years ago
6 0

Answer:

$26,179.82  

Step-by-step explanation:

FVA = PMT * n * (1 + i) ^ (n - 1)

FVA = 440 * 48* (1.00458)^(47)

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