Problem $5$

In $3$ years from now you want to buy a new car. You expect the price of the car of your dreams to be $$55,000($price

in $3$ years$).$ How big are your equal monthly contributions to your savings account if you want to have enough

money saved to buy that car in $3$ years? Assume you start saving in two months from today and make your last

contribution in $3$ years $($i$.$e$.,$ monthly payments at t $=2,3,4,...,36).$ Assume an APR of $6\%,$ monthly compounded.

$1$ Mortgage rates are compounded semi$-$annually. Problem $5)$ How big are your equal monthly contributions to your savings account if you want to have enough money saved to buy that car in $3$ years?

Question $9$Select one:

$$1,398$

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$$1,435$

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$$1,449$

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$$1,442$

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$$1,446$

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$$1,313$

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$$1,528$

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$$1,277$

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