Discounted cash Flows and Valuation

| September 28, 2018

Computing annuity payments: Gary Whitmore is a high school sophomore. He currently has 7,500 in a savings account that pays7.1 percent annually. Gary plans to use his current savings plus what he can save over the next four years to buy a car. He estimates that the car will cost $15140 in four years. How much money should Gary save each year if he wants to buy the car?

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