You want to purchase a new car in 3 years and you anticipate the cost of the car to be $25,000. you are given an investment plan with a fixed apr of 5.3% if you make regular monthly deposits. how much should you deposit at the end of each month to reach your goal of $25,000 in 3 years?

$ 642.228 should be deposited at the end of each month.

Step-by-step explanation:

We know that,

The future value of a car is,

Where, F is the periodic payment,

r is the rate per period,

n is the number of periods,

Here, S = $ 25000

Annual percentage rate = 5.3 % = 0.053,

Here, the payment is paid monthly,

So, the rate per period,

   (Since, 1 year = 12 months),

Also, the number of years = 3,

Therefore, the number of periods, n = 12 × 3 = 36

Hence, $ 642.228 should be deposited at the end of each month to reach your goal of $25,000 in 3 years.