You want to purchase a new car in 5 years and you anticipate the cost of the car to be $55,000. You are given an investment plan with a fixed APR of 6.2%, assuming that you make regular monthly deposits. How much should you deposit at the beginning of each month to reach your goal of $55,000 in 5 years? Round to the nearest cent.

Question

You want to purchase a new car in 5 years and you anticipate the cost of the car to be $55,000. You are given an investment plan with a fixed APR of 6.2%, assuming that you make regular monthly deposits.  How much should you deposit at the beginning of each month to reach your goal of $55,000 in 5 years? Round to the nearest cent.

mathmale · Answer

Please look up: http://www.investopedia.com/articles/03/101503.asp and within this web page, look for "Calculating the Present Value of an Ordinary Annuity." Good luck!