Use the TI 84 finance section of a calc to plug in numbers
New parents wish to save for their newborn's education and wish to have $34,000 at the end of 17 years. How much should the parents place at the end of each year into a savings account that earns an annual rate of 8.7% compounded annually? (Round your answers to two decimal places.)

To solve this problem using the TI-84 calculator's finance section, we will use the **TVM Solver** (Time Value of Money). Here’s how you can input the values step-by-step:

### Steps to follow on the TI-84:

1. **Access the TVM Solver:**
   - Press `APPS` button.
   - Choose `1:Finance`.
   - Select `1:TVM Solver`.

2. **Input the values into the TVM Solver:**
   - **N = 17** (This represents the number of years or periods, which is 17.)
   - **I% = 8.7** (This represents the annual interest rate, 8.7%.)
   - **PV = 0** (This represents the present value, as there is no initial amount.)
   - **PMT = ?** (This is what we are solving for, the annual payment.)
   - **FV = 34,000** (This is the future value, the amount they want to have after 17 years.)
   - **P/Y = 1** (This represents payments per year, which is annually, so it’s 1.)
   - **C/Y = 1** (This represents compounding periods per year, which is also annually, so it’s 1.)

3. **Solve for PMT:**
   - After entering all the values, move the cursor to the `PMT` field and press `ALPHA` followed by `ENTER` to calculate the value.

After performing these steps, the calculated annual payment (PMT) should be approximately **$1,160.36**.

### Final Answer:
The parents should place **$1,160.36** at the end of each year into the savings account to have $34,000 at the end of 17 years.

Would you like more details on this calculation or the steps? 

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Here are 5 related questions for further exploration:
1. How does changing the interest rate affect the annual payment amount?
2. What if the parents start with an initial deposit (present value), how would that change the result?
3. How would monthly contributions (instead of annual) affect the savings plan?
4. What happens if the interest is compounded semi-annually instead of annually?
5. How does inflation affect long-term savings for education?

**Tip:** When using financial functions on calculators, make sure your settings for periods per year (P/Y) and compounding frequency (C/Y) are correctly matched to avoid miscalculations.

New parents wish to save for their newborn's education and wish to have $34,000 at the end of 17 years. How much should the parents place at the end of each year into a savings account that earns an annual rate of 8.7% compounded annually?

Discover how to calculate the annual savings needed to reach a $34,000 goal in 17 years with an 8.7% annual interest rate. Using the Time Value of Money and compound interest, find out the step-by-step process using a TI-84 calculator.

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