SOLUTION: Alex expects to graduate in 3.5 years and hopes to buy a new car then. He will need a 20% down payment, which amounts to $3600 for the car he wants. How much should he save now to

Question 1148484: Alex expects to graduate in 3.5 years and hopes to buy a new car then. He will need a 20% down payment, which amounts to $3600 for the car he wants. How much should he save now to have $3600 when he graduates if he can invest it at 6% compounded monthly? (Round your final answer to two decimal places.)

Answer by ikleyn(52781) (Show Source): You can put this solution on YOUR website!
.


3600 = 


where X is your unknown value.   (Notice that 42 = 42 months = 3.5 years).


So,    X =  = 2919.64 dollars.    ANSWER

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