Mary and Joe would like to save up $10,000 by the end of three years from now to buy new furniture for their h

Question

Mary and Joe would like to save up $10,000 by the end of three years from now to buy new furniture for their home. They currently have $2500 in a savings account set aside for the furniture. They would like to make equal year end deposits to this savings account to pay for the furniture when they purchase it three years from now. Assuming that this account pays 8% interest, how much should the year end payments be?

Answer 1

Hurray for Mary and Joe on their upcoming furniture purchase for their new H!!!!