It is time to buy a new car. You worked hard and want to buy an...

It is time to buy a new car. You worked hard and want to buy an expensive car (Porsche Cayenne) for $100,000. Porsche dealership will gladly finance your new purchase. However, the only way for you to be financed is to show them that you have 20% of the money needed. As soon as you have that much money in your account, the dealership will finance your new vehicle. You start saving for 52 months with the APR of 7.5%, $875 every month. That account of yours compounds interest monthly. What is the difference between the 20% that Porsche requires you to have and the amount that will actually be in your account at the end of 52 months?

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jeff jeffy answered 1 year ago

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