Alberto wants to buy a car in 10 years. This car costs $200, 000 today but its price inflates 4% every year. To finance said purchase, Alberto makes deposits of $20,000 in an account at beginning of each year for six years. He deposits an additional SX at the beginning of the fourth, fifth, and sixth years. The rate of Annual effective interest is 10% Which is the value of x?
Alberto wants to buy a car in 10 years. This car costs $200, 000 today but its price inflates 4% every year. To finance said purchase, Alberto makes deposits of $20,000 in an account at beginning of each year for six years. He deposits an additional SX at the beginning of the fourth, fifth, and sixth years. The rate of Annual effective interest is 10% Which is the value of x?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Alberto wants to buy a car in 10 years. This car costs $200, 000 today but its price inflates 4% every year. To finance said purchase, Alberto makes deposits of $20,000 in an account at beginning of each year for six years. He deposits an additional SX at the beginning of the fourth, fifth, and sixth years. The rate of Annual effective interest is 10% Which is the value of x?
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