kimberlydawn: you want to purchase a car in 8 years and the cost is 87,000 and the APR is 6.5%. if you make monthly deposits, how much should you deposit each month to end up with 87,000 in 8 years
Ok Let me try to get this question straight.
You want to buy a car in 8 years. At the moment is costs $87,000 but each year the price will go up by 6.5%.
You make monthly deposits at the beginning of each month. You don't get any interest on you deposits. (This is a little strange, I wouldn't put my money in that bank account)
how much should you deposit every month to end up with $87,000 in 8 years.?
First you need to work out how much the car is going to cost in 8 yrs. This is a compound interest question so you have to use the compound interest formula. S=P(1+r)
n 2'nd you need to know how many months are in 8 years.
Lastly you will need to divide the amount of money that you will need by how many months you have to save it in.
Now, see if you can do it yourself
If you can't you can post again but you will need to tell me what your problem is.
+118654 
