A local furniture store is advertising a deal in which you buy a $3,500 living room set with 3 years before you need to make payments (no interest is incurred). How much would you have to deposit each month in a savings account earning 3.5% APR, compounded monthly, to be able to pay the $3,500 bill in three years?

Question

Quizplus · Accepted Answer

The correct answer is A because $92.35 is the monthly deposit required to accumulate $3,500 in three years at an interest rate of 3.5% APR, compounded monthly.

A Local Furniture Store Is Advertising a Deal in Which