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You have estimated that 10 years from today, you will need $85,000 to buy your dream car. You have $20,000 in the bank on which
You have estimated that 10 years from today, you will need $85,000 to buy your dream car. You have $20,000 in the bank on which you get a semi-annually compounded annual rate of 8%. But that wont be enough. You will have to start putting equal amount of money every year so that your total savings becomes $85,000 in 10 years. This annual savings of yours will only earn 6% compounded annually. How much should that amount be to reach your goal?
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