Question

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.)

Answer 1

Answer:

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

Answer 2

Assuming  Dusty can earn 9% interest, compounded annually, the  amount she will he have in six years is $25,156.50.

Future value

Using this formula

Future value=Principal(1+Interest rate)^Time

Where:

Principal=15,000

Interest rate=9%

Time=6 years

Let plug in the formula

Future value= 15,000×(1+0.09)^6

Future value=15,000×(1.09)^6

Future value= $25,156.50

Inconclusion the  amount she will he have in six years is $25,156.50.

Learn more about future value here:https://brainly.com/question/24703884