Part One: You started saving for a car when you were in middle school. You have done some research and discovered that it will cost you about $8,000 for a used car that would fit your needs. You were encouraged to invest some of your savings to help you get to your financial goal faster. So far you have saved $6,500. If you invest this money in a savings account with a 1.4% interest rate compounded annually, how long will it take to earn enough money to go purchase the car? Use the compound interest formula A = P (1 + i)^n, where A is the accumulated amount, P is the principal, i is the interest rate per year, and n is the number of years. Round your final answer to the nearest tenth.

Part 2:
You would like to purchase the car in 2 years. How much money will you need to invest at a 1.4% interest rate compounded annually in order to have $8000 in 2 years? Use the compound interest formula A = P (1 + i)^n. (Round final answer to the nearest cent, but otherwise don’t round any intermediate values)

Part 3:

Now say you invest the $6,500 and the highest interest rate you can find is 2.5% compounded annually, but you would have to leave the investment in the account for a minimum of 5 years. If you decide to wait 5 years to buy the car, how much more money will you have to save to buy a car at the $8,000 price? Use the compound interest formula A = P (1 + i)^n. (Round final answer to the nearest cent, but otherwise don’t round any intermediate values)

WILL GIVE IF ALL QUESTIONS ARE ANSWERED