You need $6000 in 3 years as a down payment on a car. (3 Pts) (Spreadsheet: 7 Pts) If your savings earn 0.25% interest per month, how much do you need to deposit today to have $6000 in 3 years? A. 5955.22 B. 5490.85 C. 5484.20 D. 2070.19 E. None of the above
Added by Francisco P.
Step 1
25% per month, we can use the formula for the present value of a future amount: \[ PV = \frac{FV}{(1 + r)^n} \] Where: - \( PV \) = Present Value (the amount to deposit today) - \( FV \) = Future Value (the amount you want in the future, which is $6000) - \( r \) Show more…
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