Your brother would like to have $29,000.00 in 3 years for the purchase of a new car. What monthly payment should he make into an account paying 6% per year compounded monthly to attain his goal?
You simply MUST learn to manipulate "Basic Principles".
i = 0.06
m = i/12 = 0.06/12 = 0.005
a = 1+m = 1.005
P is the desired payment.
Now think about the 36 payments. The first will be credited interrest 36 times. The last only once. This gives.
Can you add up the Geometric Sequence in the parentheses?
Yes, I *can* do that part. Sorry, I'm much more of an English person, to be honest. I was trying to match this problem with either Future/Present Annuity, Sinking Funds, Amortization, etc and didn't even think about using geometric progression.
THANK YOU, TK. Thanks for your patience with me.