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

Algebra ->  Finite-and-infinite-sets -> 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       Log On


   



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) About Me  (Show Source):
You can put this solution on YOUR website!
.

3600 = x%2A%281%2B0.06%2F12%29%5E42


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


So,    X = 3600%2F1.005%5E42 = 2919.64 dollars.    ANSWER