Nancy would like to accumulate $10,000 by the end of 3 years from now

Nancy would like to accumulate $10,000 by the end of 3 years from now to buy a sports car from her friend, Jim. She has $2,500 now and would like to save equal annual end-of-year deposits to pay for the car.

How much should she deposit at the end of each year in an account paying 8 percent interest to buy the car?

ANSWER

Using financial calculator: PV= -2500, N=3, I=8, FV=10000, CPT PMT = 2110.25