Tyler is putting away $1,250 per month in an account earning 9.25% annually. the plane he would like to buy currently costs $430,000 and is expected to increase in price at an annual inflation rate of 3.25% how long will it take Tyler to save up the funds to buy the plane? Tyler also wants to know what monthly savings it would take to buy the plane at the end of each year. For example, if he wanted to purchase the plane in one year, what would the monthly savings need to be for the next 12 months? What about 2 years? What would the monthly savings need to be for 24 months?
Do this for every year up to 20 years. In a spreadsheet estimate the future price of the plane at the end of each year and then based on this fv, find the monthly savings that equals this fv at an earning rate of 9.25%