You would like to purchase a new car in 4 years after you graduate college. The...

You would like to purchase a new car in 4 years after you graduate college. The car you want to buy currently costs $35,000, but you expect the price of this model of car to increase by 5% per year for the next 4 years. How much do you have to invest today if you savings account earns 3% APR (nominal) to exactly pay for your new car?

$421,657

$38,122

$42,543

$37,799

please work out and show how nominal rate works into the problem

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Expert Solution

jeff jeffy answered 6 hours ago

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