Question

Laura and John are looking to purchase a car so that John doesn’t have to take the bus to the surf shop. Hannah, who drives for Uber, already owns a 2015 Honda Civic. For the past five years they have been able to put $60 each month into a savings account with an APR of 1.05%. How much do Laura and John have saved toward a down payment?

Answer 1

As per the details give in the question-
Given -
PMT - 60
N-12*5 = 60 months
APR - 1.05% per annum i.e. 1.05/12 = .08750% per month
we have to calculate Future vallue of amount deposit at every month
We have to enter the stroke in the financial calculator-

PMT - 60
N= 60
I/Y = .08750
CPT- Fv = 3694.52

John has saved towards a down payment was 3694.52

I hope this clear your doubt.

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