Compound Interst

Question

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 $5000 for the car he wants. How much should he save now to have $5000 when he graduates if he can invest it at 8% compounded monthly? (Round your final answer to two decimal places.)

Answer 1

du yu assume him put down x$ now & it sit theer 3.5 yeers & gro from interest?

normal wae is tu add munee evree month if yu kan (but it is more komplex)

at 8%, kompound evree month

(end $)/(start 4)=1.0066666)^42

=1.321897

so $ put-up=$ want/1.321897

=5000$/1.321897

=3782.44$