Ingrid wants to buy a $22,000 car in 6 years. How much money must she deposit at the end of each quarter in an account paying 5.8% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? (Round to the nearest cent as needed.)

Ingrid wants to buy a $22,000 car in 6 years. How much money must she deposit at the end of each quarter in an account paying 5.8% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? (Round to the nearest cent as needed.)

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 5E

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

Ingrid wants to buy a $22,000 car in 6 years. How much money must she deposit at the end of each quarter in an
account paying 5.8% compounded quarterly so that she will have enough to pay for her car?
How much money must she deposit at the end of each quarter?
$
(Round to the nearest cent as needed.)

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