Question

Sarah wants to save for a car. She has $4,250 in a savings account earning 1.49%
compounded quarterly. If Sarah has four years until she gets her driver's license,
will she have enough to buy a car? If not, what do you recommend that she do to
reach her goal?

Answer 1

Given the amount Sarh has in her account, she would not have enough money to buy a car. I would advise she increases the amount of money in her account.

What is the future value of the money in her account?

The formula for calculating future value:

FV = P (1 + r)^nm

• FV = Future value
• P = Present value
• R = interest rate
• m = number of compounding
• N = number of years

$4250( 1 + 0.0149/4)^(4 x 4) = $4510.50

To learn more about future value, please check: https://brainly.com/question/18760477