Clyde Atherton wants to buy a car when he graduates from college in two years. He has the following sources of money.

1. He has $5,000 now in the bank in an account paying 8% compounded quarterly.

2. He will receive $2,000 in one year from a trust.

3. He’ll take out a car loan at the time of purchase on which he’ll make $500 monthly payments at 18% compounded monthly over four years.

4. Clyde’s uncle is going to give him $1,500 a quarter starting today for one year. In addition, Clyde will save up money in a credit union through monthly payroll deductions at his part-time job. The credit union pays 12% compounded monthly. If the car is expected to cost $40,000 (Clyde has expensive taste!), how much must he save each month?