As Executive Director of a NYC based education nonprofit agency, you are considering purchasing a new van to transport teens that are part of the education and leadership clubs to various events across the tri-state area. You expect to buy the van for $50000 four years from today.
A) If you can invest money at 5 percent compounded quarterly, how much you invest today?
B) Suppose you can put aside only $37,500 today to buy the new van in 3 years, but think you can invest the money at 7.20% compounded monthly. Determine if you will have the $50,000 you will need for the new van.