Thursday

November 27, 2014

November 27, 2014

Posted by **Kate** on Wednesday, July 13, 2011 at 10:19am.

Ren wants to buy a new car that costs $26255, so, he would deposit money into his savings account with an interest rate of 3.9% p/a compounded every 4 months, this has been going on for two years now. Determine Ren’s regular payment to the bank?

- Math -
**MathMate**, Wednesday, July 13, 2011 at 11:41amFor Sam:

Use

F=R((1+i)^n-1)/i

F=future value

R=payment per period, $3500

i=interest, 0.065/4=0.01625

n=number of periods, 5*4=20

F=$81936 approx.

For Ren

Use the same formula for Sam, except

F=26255, i=0.013, n=2*3=6,

Find R. I get approx. $4236.

**Answer this Question**

**Related Questions**

Math - The winner of a popular lottery is offered one of two options: i) a lump ...

math - A young executive deposits $400 at the end of each month for 7 years and ...

Financial Math - A young executive deposits $400 at the end of each month for 9...

finite math - A young executive deposits $400 at the end of each month for 7 ...

math - you deposit $ 900 in a savings account that earns 4%interest coumpounded ...

differential equation - If P(t) is the amount of dollars in a savings bank ...

Economics - Ben deposits $5000 now into an account that earns 7.5 percent ...

Business math - Sam Monte deposits $21,500 into Legal Bank which pays 6 percent...

math - You have 700 dollars in your bank account. Suppose your money is ...

math - You have 700 dollars in your bank account. Suppose your money is ...