Dream CarQuantitative Finance Level 3
Your dream car is going to launch exactly after 5 years from now.
Its estimated price at that time (i.e. After 5 years) will be $ 78,000 (But subject to inflation).
You currently have fixed deposit of $ 42,000 invested in bank which gives you 9% return compounded annually.
How much annual investment starting from today you have to make to buy your dream car.??
Assume inflation rate is 7.25% annually.