I WANT TO BUY A CAR THAT I KNOW WILL COST ME $43,860 (BEFORE TAXES)...
2. I want to buy a car that I know will cost me $43,860 (before taxes) in ten
years. How much must I save annually, beginning one year from now, in order to
accumulate the purchase price plus all applicable taxes by the end of Year 10?
In this case taxes are 6% GST and 8% PST which are each applied to the
purchase price. Assume that interest is calculated at 9 percent annually.
A) $2,887
B) $3,291
C) $4,500
D) $4,587