An Rutgers freshman is a commuter and owns a car. He expects to save an increasing amount of money on travel each year he is in college, as he expects to make less use of the car each year. How much money should he plan to save and put in the bank from his job in the summer to pay the travel costs for the remaining 4 years of college? Assume bank pays 7.5% per year, compounded annually, and the travel will cost $1125 the first year, $950 the second year, $775 the third year, and $600 the fourth year.

Answer rating: 100% (QA)

Solution To calculate the amount of money the Rutgers freshman should save and put in the bank ... View the full answer