Mohammad wants to buy a new car. He wants to save $6000 for down payment...
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Accounting
Mohammad wants to buy a new car. He wants to save $6000 for down payment and finance the rest of the price.
a) If he can put aside $300 per month for the down payment in an account paying 6.2% compounded annually, how long will it take him to save $6000? Give your answer in years and months.
b) After saving $6000, Mohammad goes to a dealer to buy the car he wants. He ends up signing a contract the requires him paying $320 per month for the next four years at 3.99% compounded monthly. What is the cash price of the car he bought?
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