Question

You want to purchase a new car in 8 years and expect the car to cost 95,000$. Your bank offers a plan with a guaranteed APR of 6.5 if you make regular monthly deposits. How much should you deposit each month to end up 95,000 with $ in 8 years?You should invest $ each month.(Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as needed.)

Answer 1

Use the next formula:

`\begin{gathered} A=(d(1+((r)/(n))^(nt-1)))/((r)/(n)) \\ \\ A:Final\text{ }amount \\ d:deposit \\ r:rate\text{ APR \lparen in decimals\rparen} \\ n:number\text{ of times compounding per year} \\ t:\text{ time in years} \end{gathered}`

In the given situation: