Your 16 year old son tells you he wants to be able to drive

Assignment Help Finance Your 16 year old son tells you he wants to be able to drive

Finance

Your 16 year old son tells you he wants to be able to drive

Your 16 year old son tells you he wants to be able to drive the family car and you insist that h… Show more Your 16 year old son tells you he wants to be able to drive the family car and you insist that he pay for the added cost of his auto insurance. The current rate for 16 year old boys is $ 2,000 every 12 months. Your son tells you he can work part-time and earn $160 “take home” pay per month, paid at the end of each month with the first payment one month from today. He can put his wages into a savings account earning a periodic monthly rate of .75%, compounded monthly, which he can withdraw at any time with no penalty. You agree to make the first insurance payment, and he will make the rest, starting one year from now. You trust your son to continue working and to use all of his savings if necessary to pay the insurance. Will his current job opportunity allow him to make the insurance payments? • Show less

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