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23 August, 06:46

Dusty would like to buy a new car in six years. He currently has $15,000 saved. He's considering buying a car for around $19,000 but would like to add a Turbo engine to increase the car's performance. This would increase the price of the car to $23,000. 1-a. If Dusty can earn 9% interest, compounded annually, how much will he have in six years? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor (s) from the tables provided. Round your answer to 2 decimal places.)

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  1. 23 August, 08:28
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    FV = $25,156.50

    Explanation:

    Giving the following information:

    Dusty would like to buy a new car in six years. He currently has $15,000 saved.

    If Dusty can earn 9% interest, compounded annually, how much will he have in six years?

    We need to use the following formula:

    FV = PV * (1+i) ^n

    FV = 15,000 * (1.09^6) = $25,156.50
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