A young graduate is planning on saving $776.00 each quarter for four years in an investment account paying 15.24% interest that is compounded quarterly.
His first deposit will be made at the end of the next quarter, so this is a regular annuity.
In 4 years, he also plans on being able to afford a 60-month car loan with $331.00 monthly payments at a 12.60% APR interest rate.
Given the graduate's plans, how expensive of a "dream car" will he expect to be able to purchase in four years?