John has always planned to save enough money to pay cash for his first new car. If John increases the rate he earns on his savings, then he will have to save more money today to buy his car at the same date in the future.

Question

Quizplus · Accepted Answer

If John increases the rate he earns on his savings, he will earn more interest on his existing savings which will help him reach his savings goal faster. He may even need to save less money overall.

John Has Always Planned to Save Enough Money to Pay