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.
$\displaystyle P(a^{36} + a^{35} + ... + a) = 29000$
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.