document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=31439>Question 31439</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You want to have $40,000 to buy a new boat in six years. How much do you have to save at the end of each year to reach this goal if you earn 5% a year on your savings?\r<BR>\n" );
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document.write( "This is not a question from a textbook but from an online finance course. Thank you. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #18871 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=18871\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Yearly saving = [(final goal)(yearly interest rate)]/[(1+yr.int.rate)^n - 1]<BR>\n" );
document.write( "R=[Si]/[(1+i)^n - 1]<BR>\n" );
document.write( "R=[40,000(0.05)]/[(1+0.05)^6 - 1]<BR>\n" );
document.write( "R=2000/0.34=$5882.35 (yearly saving required)<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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