SOLUTION: How much would you need to deposit in an account each month in order to have $30,000 in the account in 6 years? Assume the account earns 5.8% interest. Round your answer to the n

Question 1039372: How much would you need to deposit in an account each month in order to have $30,000 in the account in 6 years? Assume the account earns 5.8% interest.
Round your answer to the nearest cent as needed.

Found 3 solutions by Aldorozos, addingup, MathTherapy:
Answer by Aldorozos(172)   (Show Source): You can put this solution on YOUR website!
Please see:
http://www.financeformulas.net/Annuity-Payment-from-Future-Value.html
and then look at:
http://www.financeformulas.net/Annuity-Payment-from-Future-Value.html#calcHeader
To solve go to
http://www.financeformulas.net/Annuity-Payment-from-Future-Value.html#calcHeader
For future value put 30000
for rate per period put .005 (if you use your calculator and divide 5.8% by 12 to find monthly rate you get a number around .005
For number of period put 72 since six years is the same of 12* 6 months = 72 months.
You then see the number $415.95
Answer by addingup(3677)   (Show Source): You can put this solution on YOUR website!
Does the interest compound monthly? I'm going to assume it does:
:
PMT*(((1+r/n)^nt-1)/(r/n)) = 30,000
PMT*(((1+0.058/12)^12*6)-1)/(0.058/12) = 30,000
PMT*85.87 = 30,000
PMT = 30,000/85.87 = 349.37 This is how much you have to save every month.
John

Answer by MathTherapy(10555)   (Show Source): You can put this solution on YOUR website!

How much would you need to deposit in an account each month in order to have $30,000 in the account in 6 years? Assume the account earns 5.8% interest.
Round your answer to the nearest cent as needed.

Monthly deposit:
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