Question 1209861
Here's how to calculate the monthly deposit amount:

**1. Convert Annual Interest Rate to Monthly Rate:**

* Annual interest rate: 4% = 0.04
* Monthly interest rate: 0.04 / 12 = 0.003333...

**2. Calculate the Total Number of Months:**

* Savings period: 6 years
* Total months: 6 years * 12 months/year = 72 months

**3. Use the Future Value of an Ordinary Annuity Formula (Solve for PMT):**

* FV = PMT * [((1 + r)^n - 1) / r]
    * FV = Future Value ($20,000)
    * PMT = Payment (monthly deposit)
    * r = Monthly interest rate (0.003333...)
    * n = Number of months (72)

* Rearrange the formula to solve for PMT:
    * PMT = FV / [((1 + r)^n - 1) / r]
    * PMT = FV * [r / ((1 + r)^n - 1)]

**4. Plug in the Values and Calculate:**

* PMT = 20000 * [0.003333 / ((1 + 0.003333)^72 - 1)]
* PMT ≈ $246.24

**Answer:** You would need to deposit approximately $246.24 each month.