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Bella is planning to begin a savings program so that she can buy a car soon...

Bella is planning to begin a savings program so that she can buy a car soon after her graduation from college. If after graduation, Bella begins saving $2,400 each year in an investment earning 6%, what will be the value of her fund after 3 years of saving?

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Answer #1

hi, please find below answer..

Please note i have assumed that investment is made at the end of each year..

we have to use financial calculator to solve this problem
Put in calculator -
I 6.00%
PV 0
PMT -2400
N 3
Compute FV $7,640.64
Therefore amount in fund = $7,640.64
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