document.write( "Question 1132676: In 7 years I want to buy a car which most likely will cost 40,000.00. The bank offers an APR of 4.5%. How much monthly deposits I will need to make to come up with 40,000.00? \n" ); document.write( "

Algebra.Com's Answer #749786 by greenestamps(13200) $\"\"$ $\"About$

You can put this solution on YOUR website!

\n" ); document.write( "Tutor @jerrygou41 answered the wrong problem -- finding the monthly payment you would have if you took a loan for 7 years at 4.5% compounded monthly.

\n" ); document.write( "Tutor @MathTherapy gave you the correct answer without showing how to get it; if you actually wanted to learn how to solve a problem like this, that response would of course be of no use to you.

\n" ); document.write( "Here is one form of the formula you can use to find the monthly deposit required \"A\" to accumulate a value of $40,000 in 7 years at 4.5% interest compounded monthly:

\n" ); document.write( " $\"40000=+A%28%281%2B.045%2F12%29%5E%28%2812%2A7%29%29-1%29%2F%28.045%2F12%29\"$

\n" ); document.write( "It is easy to get parentheses in the wrong places when solving the problem using that formula; I suggest doing the calculations for finding A as follows:

\n" ); document.write( "(1) 1+.045/12
\n" ); document.write( "(2) to the power 84
\n" ); document.write( "(3) -1
\n" ); document.write( "(4) divided by (.045/12) [parentheses critical there!]
\n" ); document.write( "(5) 40000 divided by that number \n" ); document.write( "

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