You saving up to buy a car

Finance Mar 17, 2021

You saving up to buy a car. You plan on making your first savings deposit one year from today, and then making deposits for the following 3 years. These are the amounts you plan to save at the end of each year:

Year Projected Savings Amount

1 $1,500

2 $3,000

3 $2,200

4 $3,000

You expect to earn an annual rate of 9% per year throughout. What amount will you have available at the end, at time 4, when you will buy the car?

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