Question

You are saving $6000 for a bike that you will buy 6 years from now (t=6). You plan
to deposit $X a year, at the end of every year for the 6 years. You are so eager that
you make your first deposit today (at t=0). Your dad is so impressed with you that
he matches your first deposit (the one at t=0) to help you save the money. Find the
$X that you need to deposit each year to raise the money for the bike. (Note that
your last deposit is at t=6)

Answer 1

Its a simple question of division

suppose if you have to save $6000 in 6 years of time

than if you will divide your amount in the course of 6 years than we will get 6000/6 = 1000

i.e one must have to save $1000 every year for 6 years to get the final amount of $6000 to purchase the bike