-
Month 1
1) Purchase $1,500 car
(Time it took to save for purchase: 0 months) 2) Save $500 -
Month 2
1) Save $500 -
Month 3
1) Save $500 -
Month 4
1) Save $500 -
Month 5
1) Save $500 -
Month 6
1) Save $500 -
Month 7
1) Save $500 -
Month 8
1) Save $500 -
Month 9
1) Save $500 -
Month 10
1) Save $500 2) Sell $1500 car
3) Use money saved over 10 months for new car (10 x $500/month) 4) Buy $5000 car
(Time it took to save for purchase: 10 months) (Total amount left from resale = $1,500) -
Month 11
1) Save $577.50 -
Month 12
1) Save $577.50 -
Month 13
1) Save $577.50 -
Month 14
1) Save $577.50 -
Month 15
1) Save $577.50 -
Month 16
1) Save $577.50 -
Month 17
1) Save $577.50 -
Month 18
1) Save $577.50 -
Month 19
1) Save $577.50 -
Month 20
1) Save $577.50 2) Sell $5,000 car
3) Add $1,500 and $5,000 (sale of used car) + $5,775 (saved money) = $12,275 4) Buy $11,550 car
(Time it took to save for purchase: 20 months)
