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Over the next three years, Marti plans to save $2,000, $2,500, and $3,000, respectively, starting one...

Over the next three years, Marti plans to save $2,000, $2,500, and $3,000, respectively, starting one year from today. You want to have as much money as Marti does three years from now but you plan to make one lump sum investment today. What amount must you save today if you both earn 4.65 annually?

can this be solved by using financial calculator? I understand how to answer it using the formula on paper(6811.50 is answer) but need help using the financial calculator if possible.Thank you.

Solutions

Expert Solution

Years Cashflows
1 2000
2 2500
3 3000
$6,811.50 =NPV(4.65%,2000,2500,3000)

Press NPV in the Financial Calculator and then enter the Interest rate and all cashlows

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Thanks

jeff jeffy answered 2 years ago
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