Question

how can knowing the future value of money help plan for a large purchase like a car?
it replaces the need for a loan.
it can predict the exact future cost of the car.
it guarantees a fixed interest rate for savings.
it can help determine the amount to save monthly.

Explanation:

Future value of money calculations let you work backwards from the target amount needed for the car (adjusted for growth of savings over time) to figure out how much you need to set aside each month to reach that goal. The other options are incorrect: it doesn't replace loans, can't predict exact future car costs (which depend on market factors), and doesn't guarantee fixed savings rates.

Answer:

D. It can help determine the amount to save monthly.