Jay wants to save an amount of money to buy a new canoe two years from now. He estimates that the price of the canoe will be $2000, and he wants to save the money in two tranches at the beginning of each of the next two years. For simplicity, suppose interest is computed only at the end of the year and Jay wants to save equal amounts every year. If the interest rate is 10% per year, how much does Jay need to save every year?

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The Answer of Jay wants to save an amount of money to buy a new canoe two years from now. He estimates that the price of the canoe will be $2000, and he wants to save the money in two tranches at the beginning of each of the next two years. For simplicity, suppose interest is computed only at the end of the year and Jay wants to save equal amounts every year. If the interest rate is 10% per year, how much does Jay need to save every year?

Jay Wants to Save an Amount of Money to Buy