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July 29, 2014

July 29, 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.

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