Dusty would like to buy a new car in four years. He currently has $6,500...
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Dusty would like to buy a new car in four years. He currently has $6,500 saved. Hes considering buying a car for around $10,500 but would like to add a Turbo engine to increase the cars performance. This would increase the price of the car to $14,500.
Required:
1-a. If Dusty can earn 8% interest, compounded annually, how much will he have in four years? (FV of $1, PV of $1, FVA of $1, and PVA of $1)
1-b. Will he be able to get a car with a Turbo engine in four years?
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