You purchase an antique car today for $46,260 You expect the price of the car to...

You purchase an antique car today for $46,260

You expect the price of the car to rise by 6% per year for the next 9 years.

What do you expect the price of the car to be in year 9?

Expert Solution

Purchase Price of car today = $ 46260

Expected rise per year = 6%

Tenure required = 9 years

The price of the car to be in year 9 = 46260 * (1+6%) ^ 9 = $ 78155.30

Answer: $ 78155.30

jeff jeffy answered 2 years ago

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