Tony Mitchell has been eyeing a new car. Last weekend, he went to the dealership and noted that his dream car would cost $23,000 if purchased today. Tony currently has $9,000 saved. He does not want to go into debt to buy the car, so he has decided to save toward the purchase for three years. Tony estimates that inflation will average 4.5 percent per year. He earns 7 percent (EAR) on his savings.. How much must he save per year (at end of each year) to purchase the car in three years?

Answer rating: 100% (QA)

ANSWER Solution Car price in 3 years Here A Interest ... View the full answer