You want to buy a new sports car 3 years from now,and you plan to save $4,200 per year,beginning immediately.You will make three deposits in an account that pays 5.2% interest.Under these assumptions,how much will you have 3 years from today?

Question

Quizplus · Accepted Answer

The correct answer is A because the future value of the three deposits can be calculated using the formula: FV = PV * (1 + r)^n, where PV is the present value, r is the annual interest rate, and n is the number of years. In this case, the present value is $4,200, the annual interest rate is 5.2%, and the number of years is 3. Plugging these values into the formula, we get: FV = $4,200 * (1 + 0.052)^3 = $13,956.42.

You Want to Buy a New Sports Car 3 Years