You want to save for a new car so you make payments of $573 at the end of every month into the bank. When you receive your birthday present every year, you put an extra $1620 into a payment on Dec 31 (at the end of the year). The interest rate on your account is 4% compounded semiannually. Assume today is January 1, and that you are going to purchase this new car with cash only in seven years. What is the value of your new car? The value of the new car is $

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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You want to save for a new car so you make payments of $573 at the end of every month into the bank. When you receive your birthday present every year, you put an extra $1620 into a payment on Dec 31 (at the end of the year). The interest rate on your account is 4% compounded semiannually. Assume today is January 1, and that you are going to purchase this new car with cash only in seven years. What is the value of your new car?

The value of the new car is $ 

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