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To determine the amount you need to save each month using the sinking fund approach, you first need to understand the concept of a sinking fund. A sinking fund is a set amount of money that you save over a specific period to accumulate enough for a future expense—in this case, purchasing a car.

Assuming an interest rate for your savings (which is common in such calculations), the amount you need to save each month can be calculated with the formula for the future value of an annuity. This formula considers both the principal amount needing to be saved and any interest you can earn on that savings.

Here’s the breakdown of the calculation:

1. Determine the future value (the total price of the car, which is $4,800).

2. Identify the interest rate per month, which affects how much you need to save each month (this would typically be provided or assumed).

3. Use the annuity formula to calculate the monthly payment which, when invested with the interest rate over 12 months, will equal $4,800.

If the monthly saving amount calculated using these factors amounts to $400, then saving this amount each month over the year (with the interest considered) would allow you to reach the required total of $4,800