Future value. You’ve always wanted to buy a mint condition 1965 K-code Mustang Coupe. Unfortunately, that is an expensive desire, as the current price tag on such a car is $60,000. Further, you only anticipate it will increase in value. Specifically, you anticipate it increasing by 3% a year. You have

$20,000 right now and will immediately invest that for the eventual purchase, but you will obviously have to make additional investments if you don’t want to wait your whole life. In fact, your goal is to buy as a present to yourself when you turn 30, which you can assume is exactly eight years from now. If you can earn 6%, compounded monthly on invested monies, how much (in addition to the $20,000 right now) must you invest each month to reach your goal?