how can knowing the future value of money help plan for a large purchase like a car?\nit replaces the need…

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

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

Answer

Brief Explanations:

Knowing the future - value of money helps in financial planning. It allows one to calculate how much money needs to be saved regularly (monthly in this case) to reach a target amount for a large purchase like a car. It doesn't replace the need for a loan, can't predict the exact future cost of the car due to market fluctuations, and doesn't guarantee a fixed interest rate for savings.

Answer:

It can help determine the amount to save monthly.