A man wants to buy a car for 24,000 EUR. He decides to make a down payment of 25 per cent and the remainder with loan from Bank A. The borrowed sum will be paid back in one payment at the end of three years. During these 36 months interest is to be paid monthly at a per annum rate of 4.8 per cent. To repay this loan, the man opens a deposit fund in Bank B, where he has to make monthly deposits of X into this fund at the end of each month, which earns 3.6 per cent interest per annum compounded monthly. Find X.

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To find the monthly deposit amount X required to repay the loan you can use the concept of the futur... View the full answer