Suppose that you begin saving up to buy a car by depositing a certain amount at the end of each month in a savings account which pays 3.6% annual interest compounded monthly. If your goal is to have $15,000 in the account four and a half years from now, how much do you need to put into the savings account each month?

$2,221.6 monthly

Step-by-step explanation:

A = P(1 + r)^n

A is the total amount I intend to save = $15,000

r is the yearly interest rate = 3.6% = 0.036

n is the duration to achieve my goal = 4 and 1/2 years = 54 months

15,000 = P(1 + 0.036)^54

15,000 = P(1.036)^54

P = 15,000/6.752 = 2,221.6

I need to put $2,221.6 into the savings account monthly