document.write( "Question 1194570: 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 $4200 for the car he wants. How much should he save now to have $4200 when he graduates if he can invest it at 8% compounded monthly? (Round your final answer to two decimal places.) \n" ); document.write( "
Algebra.Com's Answer #826801 by Theo(13342)\"\" \"About 
You can put this solution on YOUR website!
f = p * (1 + r) ^ n
\n" ); document.write( "f is the future value
\n" ); document.write( "p is the present value
\n" ); document.write( "r is the interest rate per time period
\n" ); document.write( "n is the number of time periods.
\n" ); document.write( "in this problem:
\n" ); document.write( "f = 4200
\n" ); document.write( "r = .08 per year divided by 12 = . 08/12 per month.
\n" ); document.write( "n = 3.5 year * 12 = 42 months.
\n" ); document.write( "formula becomes 4200 = p * (1 + .08/12) ^ 42
\n" ); document.write( "solve for p to get: = 3177.242655.
\n" ); document.write( "confirm by replacing p with that and solving for f.
\n" ); document.write( "you get f = 3177.242655 * (1 + .8/12) ^ 42 = 4200.
\n" ); document.write( "solution is confirmed to be good.\
\n" ); document.write( "your solution is that he needs to invest 3177.25 now at 8% per year compounded monthly to have 4200 available at the end of 3.5 years.
\n" ); document.write( "let me know if you have any questions.
\n" ); document.write( "theo
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