document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=280377>Question 280377</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Jason Thomas has saved $2,500 towards a down payment on a new truck. He wants to have a total of $25,000 and plans to buy in 3 years. How much will he have to save at the end of each month if he can earn 5% on his savings?\r<BR>\n" );
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document.write( "Significant digits not applicable; exact number, no tolerance <BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #203892 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=203892\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> He already has 2500 dollars.\r<BR>\n" );
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document.write( "If he saves his money with monthly compounding, that will be worth 2903.680578 at the end of 3 years from today.\r<BR>\n" );
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document.write( "Since he wants to have a total of 25000 in 3 years, then we subtract this from 25000 to get 22096.31942 which is the additional money he will need in 3 years.\r<BR>\n" );
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document.write( "Assuming monthly compounding, he would need to make payments of 570.1785182 per month for 36 months to equal 22096.31942 at the end of 3 years.\r<BR>\n" );
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document.write( "Today he has 2500 which will be worth 2903.6805787 in 3 years.\r<BR>\n" );
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document.write( "He is making monthly payments of 570.1785182 at the end of each payments that will be worth 22096.31942 in 3 years assuming he re-invests the interest the account is earning at the end of each month.\r<BR>\n" );
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document.write( "2903.6805787 + 22096.31942 = 25000 total he will have at the end of 3 years.\r<BR>\n" );
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document.write( "This does not take into considerations taxes on the money earned which puts a whole new dimension on the calculations required.\r<BR>\n" );
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document.write( "I used a financial calculator to provide the answers but there are formulas you can apply if you don't have access to one.\r<BR>\n" );
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document.write( "I have lessons on algebra.com for future value of a present amount and payment for a future value that contains the formulas.\r<BR>\n" );
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document.write( "Those lessons can be found by clicking on the following links.\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"http://www.algebra.com/algebra/homework/Finance/FVPA.lesson\" target = \"_blank\">Future Value of a Present Amount</a>\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"http://www.algebra.com/algebra/homework/Finance/PMTFV.lesson\" target = \"_blank\">Payment for a Future Value</a>\r<BR>\n" );
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document.write( "When you get into Algebra.com, you can scan down the main page until you find \"lessons\" and click on that to get to the lessons.\r<BR>\n" );
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document.write( "All lessons written by all tutors on algebra.com can be found by clicking on the following link.\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"http://www.algebra.com/tutors/all-lessons.mpl\" target = \"_blank\">Alebra.com Lessons</a>\r<BR>\n" );
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