Answered: money should he plan to save

Engineering

Civil Engineering

money should he plan to save

Traffic and Highway Engineering

5th Edition

ISBN:9781305156241

Author:Garber, Nicholas J.

Publisher:Garber, Nicholas J.

Chapter1: The Profession Of Transportation

Section: Chapter Questions

Problem 8P

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14. A freshman college student, who owns a car, plans to buy a motorcycle. The student expects to save an increasing amount of money on travel every year he is in college, as he will make less use of his car each year. How much money should he plan to save and put in the bank from his job this summer, in order to pay his travel costs for his remaining 3 years of college? Assume that the bank pays 8% per year, compounded annually, and that his travel costs will be $900 the first year, $700 the second year, and $500 the third year.

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