Anthony would like to have $18,000 to buy a new car in three years. Currently, he has saved $15,000. If he puts $15,000 in an account that earns 6% interest, compounded annually, will he be able to buy the car in three years?
What will be an ideal response?
No.
FV = $15,000 × 1.19102 (Table 1; n = 3; i = 6%) = $17,865, which is less than the $18,000 desired amount.
Business
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