How much to put in bank today to cover maintenance of car


Mr. Jones plans to purchase a new $18000 automobile. He wants to borrow all the money for the car, and repay it in equal monthly installments over a 5-year period. The nominal interest rate is 11% per year, compounded continuously. What will be Mr. Jones's monthly payment? The maintenance cost of the car for the first five years are: $200, $300, $400, $500, and $600. How much should Mr. Jones put in the bank today to cover the maintenance of the car for the five years? Assume that the bank gives 8% interest, compounded annually.

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Mechanical Engineering: How much to put in bank today to cover maintenance of car
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