You Are Saving for a Car That You Plan to Purchase

You are saving for a car that you plan to purchase in five years.You plan to put $3,000 in savings (which earns 8%,compounded annually) at the end of each year until then.How much will you have saved for the car at the end of the five years? (Future Value of $1,Present Value of $1,Future Value Annuity of $1,Present Value Annuity of $1. ) (Use appropriate factor from the PV tables.Round your final answer to the nearest dollar amount. )

A) $15,000
B) $16,200
C) $17,600
D) $22,040

Correct Answer:

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