Mary would like to save $10 000 at the end of 5 years for a future down payment on a car
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Mathematics, 02.06.2020 00:58 akai971
Mary would like to save $10 000 at the end of 5 years for a future down payment on a car
a) How much should she deposit at the end of each month in a savings account that pays 1.2%/a, compounded monthly, to meet her goal?
b) If you currently have a part-time job, consider your hourly wage. If you do not have a job, use the minimum hourly wage in your jurisdiction. How many hours each month would you have to work, just to make those payments? Write a brief reflection on the advantages and disadvantages to long-term saving for a purchase, compared to borrowing a large sum of money and paying it off over time. Note that interest rates for savings accounts are always lower than interest rates for borrowing!
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