Dusty would like to buy a new car in six years. He currently has $15,000 saved. He's considering buying a car for around $19,000 but would like to add a Turbo engine to increase the car's performance. This would increase the price of the car to $23,000. 1-a. If Dusty can earn 9% interest, compounded annually, how much will he have in six years? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor (s) from the tables provided. Round your answer to 2 decimal places.)

Question

Porter Harrison

Business

22 March, 00:26

Dusty would like to buy a new car in six years. He currently has $15,000 saved. He's considering buying a car for around $19,000 but would like to add a Turbo engine to increase the car's performance. This would increase the price of the car to $23,000. 1-a. If Dusty can earn 9% interest, compounded annually, how much will he have in six years? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor (s) from the tables provided. Round your answer to 2 decimal places.)

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Answers (1)

Know the Answer?

Brody Guzman · Answer 1

FV = $25,156.50

Explanation:

Giving the following information:

Dusty would like to buy a new car in six years. He currently has $15,000 saved.

If Dusty can earn 9% interest, compounded annually, how much will he have in six years?

We need to use the following formula:

FV = PV * (1+i) ^n

FV = 15,000 * (1.09^6) = $25,156.50