The price of a car you want is $42,000 today. Its price is expected to increase by $1000 each year. You now have $25,000 in an investment account, which is earning 10% per year. How many years will it be before you have enough to buy the car without borrowing any money? Solve by (a) trial and error, and (b) by spreadsheet.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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The price of a car you want is $42,000 today. Its
price is expected to increase by $1000 each year.
You now have $25,000 in an investment account,
which is earning 10% per year. How many years
will it be before you have enough to buy the car
without borrowing any money? Solve by (a) trial
and error, and (b) by spreadsheet.
Transcribed Image Text:The price of a car you want is $42,000 today. Its price is expected to increase by $1000 each year. You now have $25,000 in an investment account, which is earning 10% per year. How many years will it be before you have enough to buy the car without borrowing any money? Solve by (a) trial and error, and (b) by spreadsheet.
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