To buy his favorite car, Larry is planning to accumulate money by investing his Christmas bonuses for the next five years in a security which pays a 10 percent annual rate of return. The car will cost $20,000 at the end of the fifth year and Larry's Christmas bonus is $3,000 a year. Will Larry accumulate enough money to buy the car?

Larry won't have enough money to buy the car. FV= $16,923

Explanation:

Giving the following information:

The car will cost $20,000 at the end of the fifth year and Larry's Christmas bonus is $3,000 a year.

Interest rate= 10%

To calculate the future value at the end of tje fifth year we need to use the following formula. The last deposit is made at the end of the fifth year.

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {3,000*[(1.10^4)-1]}/0.10 + 3,000= $16,923

Larry won't have enough money to buy the car.

answercombination of ability and experience of the partners;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.