Answer: $2,833.47
Step-by-step explanation:
Part 1:
n = [lnA - lnP] / ln(1 + i)
n = [ln15000 - ln10000] / ln(1 + 0.03)
n = [9.6158 - 9.2103] / 0.0296
n = 13.70
13 years, 8 months, and 12 Days
Part 2:
P = A / [(1 + i)n]
P = 15000 / [(1.03)4]
P = 15000 / 1.1255
P = $13,327.31
Part 3:
A = 10000 (1 + 0.04)5
A = $12,166.53
The amount of money you need to save to buy a car at $15,000 would be;
$15,000 - $12,166.53
=> $2,833.47
(-1,3) (0,6) (1,9) (2,12) and (3,15)
The pattern is up 1 over 3
